UC-NRLF 


OF  THE 

Uf>  IVERSITY 


VENEZUELAN  AND  GEORGETOWN  STUDENTS   FRATERNIZING  AT  THE  FOOT  OF 
STATUE  OF  SIMON  BOLIVAR 


Frontispiece 


SERIES  II  BUIXETIN  No.  1 


SCHOOL  OF 
FOREIGN  SERVICE 


VENEZUELA 

AN  ECONOMIC  REPORT  PRESENTED  BY  STUDENTS 

OF   THE    SCHOOL   OF    FOREIGN   SERVICE 

AS  AN  AID  TO  THE  FOREIGN  TRADE 

OF  THE  UNITED   STATES 


PUBLISHED  BY  THE   UNIVERSITY 

WASHINGTON,  D.  C. 

APRIL,  1921 


X/C  4.37 


THIS  REPORT 

THE   FIRST  OF  A   SERIES  OF  ECONOMIC  SURVEYS    OF  THE  COMMERCIAL 

AREAS  OF  THE  WORLD  TO  BE  CONDUCTED  AS  AIDS  TO 

AMERICAN  OVERSEAS  COMMERCE 

BY 
STUDENTS  OF  THE  SCHOOL  OF  FOREIGN  SERVICE 

3te  Debicatefc 

TO 

terror  doctor  (fcstetmn  <&il  gorges 

MINISTER  OF  FOREIGN  RELATIONS  OF 

VENEZUELA 

UPON  WHOM  AS  REPRESENTING  THE  PEOPLE 

OF 

THE  LAND  OF  BOLIVAR 
GEORGETOWN  UNIVERSITY  WILL  CONFER 

WlTH  FELICITATIONS 
THE  HONORARY  DEGREE  OF 

Boctor  of  iatog 

ON    APRIL    TWENTY-SIXTH 
NINETEEN  HUNDRED  AND  TWENTY-ONE 


u  i 


TABLE  OF  CONTENTS 

PART  I 

PAGE 

LETTER  OF  SUBMITTAL  OF  REGENT  OF  SCHOOL  OF  FOREIGN  SERVICE  TO 

PRESIDENT  OF  THE  UNIVERSITY 11 

REPORT  OF  DR.  SHERWELL,  HEAD  OF  GEORGETOWN  MISSION  TO  VENEZUELA  13 

Personnel  of  Group 13 

Program  of  Studies 14 

Departure  from  New  York 14 

Reception  by  University  of  Caracas 14 

Message  of  Georgetown  University 15 

Reply  of  University  of  Caracas 19 

Reception  at  Military  Academy 21 

Tour  of  Northern  Venezuela 23 

Recitation  and  Research  Work 26 

Final  Lecture       26 

Departure  for  the  United  States 28 

Acknowledgment  of  Courtesies 29 

PART  II 
STUDENT  REPORTS 

ECONOMIC  HISTORY  OF  VENEZUELA 31 

Geographical 31 

Political 32 

Banks  and  Currency  33 

Aids  to  Economic  Development  34 

Government 35 

Prospective  36 

POPULATION,  IMMIGRATION,  EDUCATION 37 

Census  Reports 37 

Most  Thickly  Populated  Districts 38 

Need  of  Immigrants  ....  wr 39 

Inducements  to  Immigrants  ^x 40 

Educational  Facilities 41 

PORTS  OF  VENEZUELA 46 

Coast  Line 46 

Major  Ports 47 

Minor  Ports 48 

Special  Port  Activities 49 

Port  of  La  Guaira  50 

Pilotage  and  Towage  52 

Lighterage  and  Cartage 52 

Stevedoring  52 

Port  Charges 53 

Wharves  and  Warehouses 53 

Documents  54 

7 


8 


School  of  Foreign  Service 


OCEAN,  CABLE  AND  RADIO  COMMUNICATIONS 55 

Shipping  Communication 55 

Number  of  Ships  Entering  each  Port 57 

Nationalities  of  Ships  Entering  same  Ports 58 

Steamship  Lines 60 

Red  "D"  Line 62 

Cable  Communication 63 

Wireless  Communication 64 

TRANSPORTATION  FACILITIES 65 

New  National  Highways 66 

Equipment  and  Care  of  Highways 67 

Automobiles  in  Venezuela 67 

Venezuelan  Railroads 68 

Waterways  of  Venezuela 71 

AGRICULTURE  IN  VENEZUELA 73 

Agricultural  Zone 73 

Products 73 

Coffee  / 74 

Cacao  •: 74 

Tobacco 75 

India  Rubber 77 

Sugar  Cane  : 78 

Wheat 80 

Cotton  80 

Tonka  Beans 81 

Vanilla 82 

Cocoanuts 82 

Indian  Corn 83 

Beans 83 

Indigo .  83 

Capital  Invested  in  Agriculture 84 

Forest  Zone 85 

CATTLE  INDUSTRY  OF  VENEZUELA 87 

Number  of  Cattle 88 

Other  Live  Stock 88 

Exports  of  Pastoral  Zone 89 

Facilities  for  Cattle  Raising 90 

Obstacles  to  Cattle  Raising  92 

Recent  Developments 93 

Centers  of  Animal  Industry  93 

Dairy  and  Canning  Plants 93 

Price  of  Land  95 

Desirable  Regions 95 

British  Investments 96 

MINERAL  RESOURCES  OF  VENEZUELA 97 

Land  Surface  of  Venezuela 97 

Rocks 97 

Gold  .  i 98 


Venezuela  Report  9 

Copper' 99 

Iron 99 

Coal      '. 100 

Salt 100 

Summary  of  Ores  Mined  in  Recent  Years 102 

PETROLEUM  AND  ASPHALT  IN  VENEZUELA 102 

History  of  Petroleum      103 

Mining  Law  of  1905 103 

New  Code  of  1909      104 

First  Development  of  Petroleum  Fields 104 

Mining  Law  of  1918 104 

Contracts  Awarded 105 

Opportunities  for  Development  of  Petroleum  Industry 107 

Petroleum  Exported 108 

Description  of  Asphalt       108 

Occurrence  of  Asphalt 109 

Asphalt  Industry 110 

CHECKS,    DRAFTS,  BILLS  OF    EXCHANGE    AND   TRADE   ACCEPTANCES    IN 

VENEZUELA      110 

Function  of  Credit 110 

Extent  of  Check  System  in  Venezuela Ill 

Clearing  of  Checks 112 

Laws  regarding  Commercial  Paper      112 

Drafts  and  Bills  of  Exchange 113 

Long  and  Short  Time  Credit 113 

Foreign  Drafts 114 

Definition  of  Trade  Acceptance 115 

Extension  of  Usage  of  Trade  Acceptances      116 

COMMERCIAL  TRAVELERS  IN  VENEZUELA       117 

Importance      117 

Climatic  Conditions  in  Venezuela 117 

Customs  Duties  on  Samples 118 

Catalogues 118 

Knowledge  of  Language  and  Customs  of  Venezuela 119 

Climate  of  Various  Cities       120 

Market  for  Various  Products 120 

Complaints  Against  American  Methods  of  Packing 120 

Roads  and  Highways  in  Venezuela      121 

Tables  of  Distances  Between  Principal  Cities 121 

Freight  Charges .  126 

Financial  Conditions 126 

Currency      127 

Venezuela's  Tariff 127 

Opportunity  for  American  Travelers       128 

FOREIGN  INVESTMENTS  AND  AMERICAN  CAPITAL  IN  VENEZUELA  J  .    .    .    .  129 

Venezuela's  Public  Debt 129 

Foreign  Banks     .  •/ 130 

Public  Utilities    .  */.  .131 


10 


School  of  Foreign  Service 


Other  Investments      131 

Investment  Opportunities 132 

Proposed  Railroads 133 

FOREIGN  TRADE  AND  AMERICAN  GOODS      137 

Foreign  Trade  in  Venezuela      137 

Effects  of  the  World  War      138 

Imports  and  Exports      139 

Summary  of  Venezuelan  Foreign  Trade— 1917-1919 140 

Market  for  American  Goods 141 

Complaints  Regarding  Packing 141 

American  Selling  Methods 142 

German  Competition 142 

Customs  Collections 143 

American  Personnel  in  Venezuela 144 

APPENDIX 

CLOSING   LECTURE   IN   SCHOOL  OF   POLITICAL    SCIENCE   BY   DR.    PEDRO 
ITRIAGO  CHACIN 145 

EDITORIAL  COMMENT  BY  AMERICAN  AND  VENEZUELAN  JOURNALS  ....  156 
Good  Trade  Ambassadors,  N.  Y.  Post  Express,  August  11,  1920  .  .  .156 
Student  Fraternization,  El  Nuevo  Diario,  Caracas,  June  20, 1920  .  .156 
Llegada  de  los  Estudiantes  Americanos,  El  Nuevo  Diario,  June  27, 1920.  1 58 

ElProksor  Sherwell,  El  Universal,  June ^7,/920 159 

Dr.  Sherwell  Arrives,  etc.,  LaPrensa,NewYork,  August  26,1920    .    .    .161 
Georgetown  Students  Welcomed  in  Venezuela,  Sunday  Star,  Washing- 
ton, July,  1920 163 

El  Match  de  Base-ball,  El  Impartial,  July  18,1920 164 

ILLUSTRATIONS 

At  the  foot  of  Bolivar's  Statue Frontispiece 

FACING   PAGE 

Salutation — Georgetown  to  University  of  Caracas 16 

Reply  of  University  of  Caracas  to  Georgetown 20 

Map  of  Venezuela 

Dr.  Sherwell  and  Georgetown  Students 31 

Rancho  Grande  and  Ocumare  de  la  Costa 49 

Bolivar's  Home  in  the  Mountains.    On  the  Road  from  Maracay  to  Caracas     65 

At  Central  Tacarigua.     At  foot  of  Statue  of  Ribas 97 

Ceremonies  in  honor  of  Bolivar  and  Washington 133 

Trophy  presented  to  Georgetown  Students  by  Minister  of  Public  Instruction  165 


REPORT  OF  THE  REGENT  OF  THE  SCHOOL  OF  FOREIGN  SERVICE 
TO  THE  PRESIDENT  OF  GEORGETOWN  UNIVERSITY,  WITH 
RESPECT  TO  THE  VISIT  OF  CERTAIN  STUDENTS  OF  THE  UNI- 
VERSITY TO  VENEZUELA. 


OFFICE  OF  THE  REGENT 

SCHOOL  OF  FOREIGN  SERVICE 

GEORGETOWN  UNIVERSITY 

WASHINGTON,  D.  C. 

March  1,  1921. 

To  the  President  of  Georgetown  University. 
Sir: 

I  hand  you  herewith  papers  relating  to  the  visit  to  Venezuela  made  by  a 
group  of  eighteen  students  in  the  summer  of  1920.  These  papers  comprise  a 
brief  report  of  the  trip,  by  Dr.  G.  A.  Sherwell,  who  was  in  charge  of  the  mission, 
some  of  the  essays  on  the  economic  resources  of  Venezuela,  prepared  by  the 
students,  and,  in  the  appendix,  a  translation  of  a  notable  address  delivered  by 
Dr.  Itriago  Chacin  at  the  close  of  the  Georgetown  students'  sojourn  in  Caracas, 
together  with  editorial  comments  from  certain  journals  of  this  country  and 
Venezuela.  I  venture  to  refer  briefly  to  each  of  these  documents. 

Dr.  Sherwell's  report  makes  clear  how  great  was  the  courtesy  shown  and  how 
extensive  were  the  facilities  afforded  to  the  Georgetown  students  by  the  official 
and  academic  authorities  of  Venezuela.  I  believe  the  University,  and  for  that 
matter  academic  circles  outside  our  own  University  in  this  country,  must  be 
grateful  for  the  many  attentions  and  unfailing  interest  manifested  by  the  Vene- 
zuelan officials  and  teachers  in  the  work  of  these  students. 

Dr.  Sherwell's  report  likewise  makes  clear  that  the  contact  was  a  valuable 
one  for  the  particular  students  who  made  the  trip,  and  that  they  bore  themselves 
well  and  creditably.  All  the  more  satisfaction  may  be  derived  from  this  fact 
inasmuch  as  the  students  selected  might  be  fairly  taken  as  a  cross  section  of  the 
student  body  in  the  School  of  Foreign  Service, — and  you  are  already  aware 
how  widely  representative  of  the  youth  of  our  country  that  student  body  is. 
That  these  young  men  should  have  made  a  favorable  impression  in  a  rather 
long  trip  of  this  character  when  they  were  under  the  observation  of  a  great  num- 
ber of  persons,  and  often  in  situations  calling  for  a  demonstration  of  no  incon- 
siderable poise  and  sense  of  the  fitness  of  things,  can  not  but  enhance  our  satis- 
faction and  our  confidence  not  merely  in  the  resourcefulness  but  in  the  trust- 
worthiness of  the  men  upon  whom  this  country  must  depend  in  the  future  for  the 
promotion  of  her  trade  and  the  dignified  and  active  representation  of  her  policies. 

The  address  of  Dr.  Itriago  Chacin  has  been  reproduced  in  full, — in  so  far  as 
a  translation  can  ever  render  the  full  effect  of  an  original, — and  it  is,  quite  apart 
from  its  intrinsic  merit,  a  document  of  much  interest,  for  it  shows  how  profitable 
and  enlightening  must  be  the  studies  in  the  field  of  political  science  carried  on 
by  students  sent  out  in  groups  under  conditions  described  in  this  report. 
Studies  in  the  field  of  Political  Science  are  not,  to  be  sure,  the  primary  object  of 
students  going  abroad  to  survey  the  economic  resources,  the  commercial  usages, 
and  the  facilities  for  transportation  and  distribution  of  commodities  in  the 
countries  which  they  visit.  None  the  less,  sustained  contact  with  trained  mas- 
ters of  political  studies  may  at  times  be  possible,  and  should  in  all  cases  be  availed 
of  in  order  to  gain  the  valuable  experience  of  hearing  points  of  view  on 
11 


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School  of  Foreign  Service 


matters  of  international  policy  developed  in  other  countries  and  under  con- 
ditions quite  different  from  those  obtaining  at  home. 

Space  forbids  that  more  than  thirteen  of  the  reports  prepared  by  the  students 
be  published.  Those  selected  are  believed  to  have  the  more  general  interest 
and  to  contain  material  not  easily  found  in  other  sources.  All  of  them  were 
based  upon  personal  investigation  and  consultation  with  Venezuelan  authori- 
ties. Obviously,  there  are  evidences  of  hasty  preparation  and  the  papers  leave 
something  to  be  desired  in  the  arrangement  and  presentation  of  material,  the 
collation  of  figures,  and  the  critical  discussion  of  printed  sources.  In  places, 
too,  there  are  statements  which  might  require  modification  if  a  more  mature 
person  were  to  assume  responsibility  for  the  given  report.  They  are  submitted 
solely  as  the  work  of  students  in  process  of  formation. 

It  is  of  interest  to  call  attention  to  the  fact  that  this  visit  to  Venezuela  was  the 
source  of  much  favorable  comment  in  the  press  of  the  two  countries,  several 
papers  in  the  United  States  dwelling  upon  its  significance  as  the  first  formal 
effort  to  place  our  own  students  directly  in  contact  with  the  life  of  the  other 
Republics.  Specimens  are  included  in  the  Appendix. 

Dr.  Sherwell  has  referred  to  the  bestowal  of  a  decoration  on  him  by  the 
Venezuelan  Government,  and  has  minimized  its  personal  significance.  This 
reservation  of  his  I  transmit  with  amendments,  for  I  can  not  but  share  the  views 
of  the  Venezuelan  authorities  in  granting  him  first,  the  Medal  of  Public  Instruc- 
tion and  later  the  Order  of  the  Liberator,  that  he  had  rendered  Venezuela  a 
lasting  service,  no  less  than  his  own  country,  by  his  dignified,  gracious,  and 
enthusiastic  interest  in  the  promotion  of  the  intellectual  and  commercial 
relations  of  the  two  republics. 

The  immense  practical  value  of  laboratory  work  in  the  physical  sciences  is 
among  the  cardinal  tenets  of  sound  pedagogy.  In  like  manner,  the  application 
of  economic  principles  and  theories  of  political  science  to  actual  conditions  as 
they  exist  in  the  world  today  is  the  ideal  feature  of  a  liberal  education  for  foreign 
service  such  as  this  department  undertakes  to  provide.  Perhaps  in  no  other 
educational  program  should  more  pains  be  taken  to  cultivate  the  faculty  of 
accurate  observation,  exact  expression  and  bold  initiative,  based  on  logical 
reasoning  aided  by  fertile  imagination. 

Proficiency  in  the  technique  of  foreign  trade  or  consular  practice  or  diplo- 
matic procedure  is  but  a  fractional  part  of  the  full  equipment  of  American 
youths  aspiring  to  serve  their  country's  interests  abroad  either  in  public  or 
private  capacity.  Technical  knowledge  will  be  futile  unless  humanized  by  a 
broad  sympathy  with  the  men  and  institutions  of  other  climes.  Therefore,  the 
policy  of  sending  such  groups  of  students  abroad  deserves  encouragement,  and  I 
earnestly  recommend  that  the  Regent  of  the  School  of  Foreign  Service  be  author- 
ized, on  the  basis  of  the  substantial  success  of  this  first  experimental  visit,  to 
send  such  students  as  it  is  possible  to  select  and  send  under  competent  direction, 
to  other  countries  in  the  summer  of  the  present  year  and  hereafter. 

Respectfully,  EDMUND  A.  WALSH,  S.  J., 

To  Regent. 

JOHN  B.  CREEDEN,  S.  J.,  PH.  D., 
President  of  Georgetown  University, 
Washington,  D.  C. 


PART  I 

REPORT  OF  DR.  GUILLERMO  A.  SHERWELL 

Professor  of  Spanish 
TO  THE  REGENT  OF  THE  SCHOOL  OF  FOREIGN  SERVICE 

Sir: 

In  order  to  afford  the  students  of  the  School  of  Foreign  Ser- 
vice an  opportunity  to  practise  Spanish  and  to  study  at  first 
hand  economic  conditions  in  one  of  the  South  American  coun- 
tries, it  was  decided  in  May,  1920,  to  send  a  group  of  not  more 
than  twenty  to  Venezuela  under  the  direction  of  the  Professor 
of  Spanish.  The  Knights  of  Columbus  agreed  to  pay  for  the 
expenses  of  twelve  of  the  students,  who  were  holders  of  scholar- 
ships awarded  by  that  organization  to  ex-service  men,  and  six 
other  candidates  offered  to  pay  their  own  expenses.  Conse- 
quently, a  group  of  eighteen  was  selected  in  accordance  with  the 
following  conditions  laid  down  by  the  University  authorities: 
(1)  That  the  student's  mark  in  Spanish  had  not  been  less  than 
70%  and  (2)  That  he  had  not  failed  in  any  other  subject  of  the 
Foreign  Service  curriculum.  The  students  chosen  were: 

PAUL  BABBITT,  Arizona 

J.  HOMER  BUTLER,  Massachusetts 

FRANK  CHIRIELEISON,  District  of  Columbia 

JAMES  F.  COSTELLO,  Wisconsin 

WALTER  J.  DONNELLY,  Connecticut 

EDWARD  FANNING,  New  York 

WILLARD  C.  FRAZEE,  Ohio 

MATTHEW  HEILER,  Massachusetts 

NELSON  HOPKINS,  New  Jersey 

WILLIAM  JOHNSON,  District  of  Columbia 

GEORGE  E.  McKENNA,  Massachusetts 

THOMAS  MORRIS,  New  York 

EDWARD  L.  MURPHY,  Pennsylvania 

JAMES  J.  O'NEIL,  Massachusetts 

JOSEPH  P.  QUINLAN,  Massachusetts 

DAVID  SCHLESINGER,  Iowa 

PHILIP  D.  SULLIVAN,  Massachusetts 

GEORGE  A.  TOWNSEND,  Maryland 

It  was  provided  that  the  students  should  have,  each  day,  an 
academic  hour  of  formal  Spanish  instruction  while  in  South 
America,  that  they  should  be  distributed  among  private  families 
where    they    might    have    frequent    opportunity    to    practise 
13 


14 


School  of  Foreign  Service 


Spanish  and  that  they  should  devote  a  second  academic  hour 
each  day  to  recitation  and  discussion  of  the  economic  and 
financial  conditions  of  Venezuela.  Individual  research  work  on 
economic  topics  was  likewise  required.  The  results  of  each 
student's  investigations  were  to  be  discussed  in  class  so  that 
each  student  might  profit  by  his  fellow-students'  labors,  each 
man  having  one  topic  on  which  to  report.  This  program  was 
carried  out  as  it  had  been  planned.  The  topics,  distributed  by 
lot  during  the  sea  voyage,  were  as  follows : 

Economic  history  of  Venezuela. 

Agricultural  and  forestal  resources  of  Venezuela. 

Cattle  industry  in  Venezuela. 

Coffee  industry  in  Venezuela. 

Sugar  industry  in  Venezuela. 

Mineral  oil  industry  in  Venezuela. 

Mineral  resources  of  Venezuela. 

Ports  of  Venezuela. 

Commercial  travelers  in  Venezuela. 

Venezuela  as  a  field  for  the  investment  of  foreign  capital.  Present 
foreign  investments. 

Banking  and  currency  in  Venezuela.     History  and  present  status. 

Venezuelan  foreign  trade.     American  goods  in  Venezuela. 

Bills  of  exchange,  checks,  and  trade  acceptances  in  Venezuela. 

Steamer  and  cable  communications  with  Venezuela. 

Taxation  and  budget  in  Venezuela. 

Venezuelan  public  debt. 

Population,  immigration,  and  public  education  in  Venezuela. 

On  June  16,  1920,  the  group  sailed  from  New  York  on  the 
Red  "D"  Line  Steamship  Caracas.  Several  representatives 
of  the  press  came  on  board  together  with  friends  and  alumni  of 
Georgetown  to  bid  godspeed  to  the  first  missionaries  of  friend- 
ship sent  by  an  American  university  to  South  America. 

On  June  26th  the  group  arrived  at  La  Guaira,  the  port  nearest 
the  capital  of  the  country,  and  was  received  by  personal  repre- 
sentatives of  the  Secretaries  of  Foreign  Relations,  of  the  Treas- 
ury and  of  Public  Instruction,  as  well  as  by  a  very  distinguished 
group  of  students  of  the  different  schools  of  Caracas,  headed  by 
their  President,  Mr.  Atilano  Carnevali.  After  lunching  at  a 
beach  called  Macuto,  the  group  was  taken  in  automobiles  to 
Caracas  and  escorted  to  their  lodgings  where  two  students  were 
placed  in  each  house. 

On   Monday,  June  28th,  the  message,  in  Latin,  from   the 


Venezuela  Report  15 

University  of  Georgetown,  engraved  on  parchment  and  addressed 
to  the  Universidad  Central  de  Caracas,  was  delivered  to  the 
Venezuelan  authorities  in  the  beautiful  auditorium  of  that 
University. 

The  President  of  the  Council,  a  body  which  exercises  super- 
vision of  the  University  studies  and  is  the  supreme  examining 
tribunal  for  the  conferring  of  diplomas,  announced  in  brief  words 
the  object  of  the  meeting  and  invited  us  in  the  following  words, 
to  present  the  message  of  the  University  of  Georgetown : 

"  Gentlemen  of  the  National  Council  of  Instruction  and 
Members  of  the  National  Commissions;  President  and  Mem- 
bers of  the  Schools  of  Physical,  Medical,  Mathematical  and 
Political  Sciences  of  the  City  of  Caracas;  Representatives 
of  the  Academies  and  other  Institutions  of  University 
Extension;  Students,  Ladies  and  Gentlemen: 

"We  have  assembled  to  receive  the  visit  of  illustrious 
guests  who  bring  a  noble  and  generous  message  from  the 
University  of  Georgetown;  they  come  at  a  time  propitious 
for  American  patriotism  and  they  are  going  to  spend  here 
the  month  in  which  we  celebrate  the  date  of  the  indepen- 
dence of  our  countries.  It  will  be  a  pleasure  for  the  Vene- 
zuelans to  do  as  much  as  lies  in  their  power  to  the  end  that 
such  distinguished  guests  carry  back  to  their  country  the 
most  agreeable  impressions.  You  are  about  to  hear  the 
message  from  the  University  of  Georgetown.  Prof.  Sher- 
well  will  now  address  you." 

The  message  follows. 

The 

President  and  Faculties  of  the 
University  of  Georgetown 

to 
The  President  and  Faculties  of 

the 
Central  University  of  Caracas , 

Greetings: 

"We  avail  ourselves  of  a  mission  made  with  an  educational 
object  by  one  of  our  professors  and  a  group  of  our  students  to 
send  to  you  and  to  the  students  of  your  University  fraternal 
expressions  of  affection  and  comradeship  from  the  University 
of  Georgetown. 

"  The  University  of  Georgetown  has  developed  at  the  same 
time  that  this  nation  has  advanced  into  its  proper  life.  She 
has  witnessed  its  struggles  for  liberty ,  its  efforts  to  acquire 


16  School  of  Foreign  Service 

constitutional  life,  the  bloody  conflict  which  was  necessary  tc 
preserve  the  union  and  the  last  tremendous  war  into  which  it 
entered  in  order  to  preserve  inviolate  the  sacred  heritage  of 
liberty  which  our  ancestors  have  handed  down  to  us. 

"  To  each  one  of  these  conflicts  the  University  of  Georgetown 
has  given  liberally  of  its  blood,  and  she  preserves  sacred  the 
names  of  those  who  carried  the  banner  of  the  Blue  and  Gray 
whithersoever  the  banner  of  the  Stars  and  Stripes  led  them. 

"Identified  with  the  country  of  Washington  since  the  days 
of  Washington ,  this  University  believes  itself  worthy  to 
regard  itself  as  a  sister  of  the  University  of  the  country  of 
Bolivar,  and  in  extending  its  hand  to  clasp  the  hand  of  its 
sister ',  the  University  of  Georgetown  presents  to  the  University 
of  Caracas  her  sincere  wishes  that  the  friendship  of  the  two 
institutions  may  endure  and  be  as  profound  as  was  the  friend- 
ship of  the  two  liberators  for  the  whole  American  continent, 
and  as  sincere  as  is  the  friendship  which  exists  between  the 
United  States  of  North  America  and  the  United  States  of 
Venezuela.  Assuredly  there  is  no  stronger  bond  among  men 
than  the  pure  love  of  liberty  and  truth.  In  this  common 
devotion,  racial  differences  are  forgotten  and  party  strife 
ceases.  When  Truth  and  Liberty  speak,  all  else  is  silent. 

Farewell. 

JOHN  B.  CREEDEN,  S.  J.,  PH.  D., 

Rector  of  the  University. 

WILLIAM  COLEMAN  NEVILS,  S.  J.,  PH.  D., 

Dean,  Faculty  of  Arts  and  Sciences. 

THOMAS  I.  GASSON,  S.  J.,  PH.  D., 

Dean,  Graduate  School. 
BRUCE  L.  TAYLOR,  D.  D.  S., 

Dean,  Faculty  of  Dentistry. 
GEORGE  MARTIN  KOBER,  M.  D.,  LL.  D., 

Dean,  Faculty  of  Medicine. 
GEORGE  E.  HAMILTON,  LL.  D., 

Dean,  Faculty  of  Law. 

EDMUND  A.  WALSH,  S.  J.,  PH.  D., 

Regent,  School  of  Foreign  Service. 

Given  at  Washington,  on  the  Ides  of  June,  in  the  year  ol 
our  Salvation  One  Thousand  Nine  Hundred  and  Twenty. " 


,VS,/tff  ;  r//rfr/tt(y'/<-'-  f/»fff>wf6r   ?/;,"•'/ >/'/•• '/'.J    /// f, //'„/"  //s/r/'  .'/  //  -f'Jf/  f  /  /x/,y//  /tf<,jt'/trf 
///,',/,„,  /f/r~,/r,/>  y/ff,  sts/fti*;.!  S/'S-rv/tf/f  /tw.*,-!  s/f,/,/,.j ,  /»/>  /y//fv»:>  '/,'&/&?//'/  //w/ffftsssj/S 


s'/t/ri  //<<>•>    ftr/rr//  /tt  rrs/f,,,f,s,<  r/?,,",    ,/Sr    ,',,,.i.tSf,,//.>    (/ ,,ff/( M//JJts,,/,j  ff/sa  -/>O/f.f,f>', 
•'/",<:>/r,,s  •//'.;/, fffrt    /rSf-t-rt/**- ,   f/    '//ff.i/,ff,r//,,,, /r, ,. i/J. /•„/,„„•  ^,</f,r   /a/frttr  r///rrr>vttS 

(/ .  V,fj/,,,/,j /ftsit   /-////-//•/,  yf,tf,,/f/,,,af///,,(  ,yfr,,,j,i/,J,  ;,/>/,  ,<sf,/f,,,r/,f    fyr/fM. 

.  i//'  .if//,r  r.,/  //f/a  '>t"/r/fJ  //fs/tf/'/tr.J  /st/r,  .f  ra>trf//ft'/f/i-  rs/frf//t  >fw  6tf*r/fffa  fs//f/>/'r  // 
sviV/<t/fJ  .>/"!/"/  ,  -  &s>  /*//:>  //"//<  .js/r,,/  >/f//r0jff/f/t  r/rtvfit//rf/rj  ;  .J//r/'/ //ffr/f/st/'  r/f/>f/WS&; 
/(jf/f/s/fir  ,iv/f///  s//r/s.j  /f//~s/ff/f/f  /VjY/cr/f.}  ///•*> r//r/s.iff//r  rj///f/t: 


SALUTATION — GEORGETOWN  TO  UNIVERSITY  OF  CARACAS 


Venezuela  Report  17 

After  delivering  in  Spanish  the  formal  message  from  the 
University  of  Georgetown  to  the  Universidad  Central  de  Caracas 
your  representative  added  the  following  words: 

"The  students  of  the  School  of  Foreign  Service  of 
Georgetown  University  are  very  sensible  of  the  honor  con- 
ferred upon  them  by  this  reception  in  the  Assembly  Hall 
of  the  Central  University  of  Caracas,  and  especially 
appreciative  of  the  courtesy  shown  by  this  distinguished 
assembly  of  selected  social  and  educational  elements  of  this 
capital. 

"The  students  of  the  School  of  Foreign  Service  have  been 
sent  to  this  wonderful  country  of  yours  to  practise  the 
beautiful  Spanish  language,  to  study  the  economic  and 
financial  life  of  Venezuela,  and  to  live  among  you  your  own 
life  and  observe  your  own  customs.  They  come  to  you 
with  minds  set  to  their  work  and  with  hearts  open  to  all 
impressions  which  may  come  from  the  outside  world. 
Most  of  them  have  passed  through  the  harrowing  experi- 
ences of  the  World  War.  They  crossed  the  seas  to  the 
European  battle  fields  to  defend  the  cause  of  liberty  for 
which  America  stands,  and  now,  upon  returning  to  the  activi- 
ties of  civil  life,  they  are  preparing  themselves  for  a  better 
service  to  their  country  by  improving  their  minds,  with  the 
ultimate  purpose  of  promoting  the  foreign  trade  of  the 
United  States.  They  have  much  to  learn,  and  you  have 
much  to  teach  them.  They  are  in  your  hands,  and  I  am 
sure  that  the  University  of  Georgetown  could  never  hope 
to  provide  better  instructors  for  students  of  Latin  American 
affairs. 

"We  have  journied  hither  with  only  the  general  knowl- 
edge of  this  country  acquired  in  our  schools,  but  since  our 
arrival  at  La  Guaira,  we  have  passed  through  experiences 
which  have  left  our  spirits  fatigued,  if  this  expression  may 
be  permitted,  with  the  constant  spectacle  of  grandeur  and 
majesty  never  dreamed  of  before.  As  we  climbed  your 
lofty  mountains,  which  form  a  great  barrier  between  the 
heart  of  your  country  and  the  outside  world,  we  were  con- 
tinually passing  from  one  deep  impression  to  another,  and 
at  the  same  time  were  arriving  at  a  clearer  understanding 
of  the  character  of  your  people.  We  saw  the  humble 
laborers  of  the  field  stand  erect  as  we  passed  and  show  that 
noble  type  of  manhood  which  has  been  observable  in  all  the 
men  we  have  met  in  this  country.  And  when  we  gazed 
upon  the  mountains  and  the  huge  abysses  which  abound  in 
this  part  of  the  American  continent,  we  ceased  to  wonder 
at  the  marvelous  deeds  of  your  famous  warriors  in  your 
struggle  for  independence.  Backed  by  men  accustomed 


18 


School  of  Foreign  Service 


to  fight  and  conquer  a  land  of  mountains  and  valleys  like 
your  mountains  and  valleys,  a  chieftain  might  well  dare  to 
range  over  a  continent  fighting  for  the  freedom  of  his  own 
country  and  offering  freedom  to  neighboring  peoples. 
Bolivar  and  the  Venezuelans  seem  in  some  respects  identi- 
cal with  this  territory.  Their  characters  suggest  mountains. 

"  We  shall  learn  more  and  more  of  you  during  our  stay, 
and  I  hope  you  will  know  us  well  enough  to  consider  us  your 
sincere  and  permanent  friends. 

"To  the  young  men  who  study  in  this  University  I  must 
say  a  few  words,  yielding  to  the  old  tendency  of  men 
accustomed  to  speak  from  the  chair  or  the  platform  of  the 
classroom.  It. would  seem  that  every  teacher  should  have 
a  message  to  deliver  to  the  youth  of  his  country,  or  to  those 
of  any  other  country  of  the  world.  My  message  to  you  is 
this:  We  must  use  every  endeavor  in  scientific  research 
to  extract  from  nature  all  that  nature  has  for  the  benefit 
of  mankind,  in  order  to  destroy  such  evil  forces  as  still 
molest  human  beings,  to  improve  our  standards  of  life,  to 
advance  upwards  to  higher  levels  in  thinking  and  in  acting. 
To  accomplish  this,  we  need  clear,  practical  and  investigating 
minds.  But  beware  of  the  fallacies  entertained  by  those 
who  contend  that  the  mind  of  man  can  encompass  and 
explain  all  truths,  and  that  whatever  can  not  be  fully 
explained  by  the  mind  or  demonstrated  according  to  the 
limited  means  that  science  may  offer  is  not  truth.  There 
are  some  things  above  human  reason,  and  to  understand 
them  and  to  explain  them  we  must  invoke  more  than  our 
minds.  We  must  bring  to  them  the  best  of  our  hearts. 
Those  great  truths  that  are  beyond  actual  scientific  demon- 
stration are  not  lesser  truths,  but  greater  truths.  It  is 
not  permissible  to  live  indifferent  to  good  and  bad  as  some 
so-called  philosophers  pretend,  but  it  is  permissible,  and  it 
is  our  solemn  duty  in  many  instances,  to  look  beyond 
science,  because  there  are  summits  which  science  does  not 
reach,  and  to  attain  which  we  must  fly  with  the  wings  of  our 
hearts.  The  supreme  spiritual  conceptions  of  God,  of 
Home,  of  Country  do  not  fall  within  the  range  of  the  physi- 
cal sciences,  but  are,  nevertheless,  the  great,  fundamental 
truths  upon  which  everything  noble  and  everything  lofty 
must  rest. 

"We  thank  you,  ladies  and  gentlemen,  for  opening  your 
doors  to  us  in  such  a  frank  and  cordial  manner,  and  we  hope 
to  prove  during  our  stay  in  this  country  that  we  are  not 
unworthy  of  such  friendship." 


Venezuela  Report  19 

The  Minister  of  Public  Instruction,  Dr.  Gonzalez  Rincones, 
then  read  the  reply  of  the  University  of  Caracas  and  later  for- 
warded the  engrossed  manuscript  to  Washington: 

The  President  of  the  Council  of  Instruction 

and  the 
Faculties  of  the  University  of  Caracas 

to  the 
President  and  Faculties 

of  the 

University  of  Georgetown , 
Washington ,  D.  C.y 

Greetings: 

"We  appreciate  profoundly  your  message  of  friendship <y 
and  we  see  with  pleasure  under  the  roof  of  the  University  of 
Caracas  your  distinguished  professor  and  this  chosen  group 
of  your  students. 

"  The  fraternal  expressions  of  affection  and  comradeship 
which  the  President  and  Faculties  of  the  University  of  George- 
town send  us  have  entered  into  the  hearts  of  our  professors  and 
students^  and  have  found  there  a  most  cordial  welcome.  Your 
travelers  will  be  able  to  tell  you  how  great  has  been  the  enthusi- 
asm which  your  visit  has  awakened^  a  visit  which  does  not  come 
from  a  house  unknown  to  us^  since  besides  holding  in  our 
memory  the  scientific  renown  which  the  University  of  George- 
town deservedly  enjoys^  and  the  marks  of  glory  of  which  she 
boasts ',  we  remember  with  that  fondness  which  we  owe  to  all 
that  proceeds  from  the  Father  of  our  Country •,  the  special 
recommendation  which  he  made  that  Fernando  Bolivar  be 
educated  in  the  celebrated  and  ancient  College  of  Georgetown , 
which  we  see  to-day  converted  into  a  great  University. 

"  Venezuelan  students  have  distinguished  themselves  always 
by  love  of  liberty ',  and  have  sacrificed  themselves  with  Ribas  in 
the  holy  struggle  for  our  independence.  With  equal  love  they 
venerate  Science  and  Liberty.  It  is  not  strange ',  then,,  that  they 
are  full  of  joy  in  receiving  envoys  of  a  University  which,  on  the 
banks  of  the  Potomac  and  near  the  tomb  of  Washington ,  holds 
always  aloft  the  ideals  which  the  liberators  of  the  North  and  of 
the  South  loved  with  passionate  devotion. 

"  The  professors  and  students  of  the  country  of  Bolivar  clasp 
cordially  the  hand  which  the  University  of  Georgetown  extends 
to  them^  and  will  deem  it  a  signal  honor  to  cultivate  the  friend- 
ship which  tradition  has  originated  and  which  the  visit  of 
your  professor  and  your  students  will  contribute  powerfully 
to  cement." 


20  School  of  Foreign  Service 

Given  in  the  City  of  Caracas,  the  fourth  day  before  the 
Kalends  of  July  in  the  year  of  our  Salvation,  One  Thousand, 
Nine  Hundred  and  Twenty. 

Farewell. 

President  of  the  Council  of  National  Instruction, 

R.  GONZALEZ  RINCONES. 
The  President  of  the  Commission  of  Theology, 

NICOLAS  E.  NAVARRO. 
The  President  of  the  Commission  of  Political  Sciences, 

CARLOS  F.  GRISANTI. 
The  President  of  the  Commission  of  Medicine, 

Luis  RAZETTI. 

The  President  of  the  Commission  of  Physics,  Mathematics, 

and  Natural  Sciences, 

GERMAN  JIMENEZ. 
The  President  of  the  Commission  of  Philosophy  and  Letters, 

R.    VlLLAVICENCIO. 

The  President  of  the  Commission  of  Political  Sciences, 

JOSE  SANTIAGO  RODRIGUEZ. 

The  President  of  the  Faculty  of  Medicine, 

Luis  FELIPE  BLANCO. 

The  President  of  the  Faculty  of  Mathematics,  Physics  and 
Natural  Sciences, 

Luis  UGUETO. 

Secretary  of  the  Council  of  Instruction, 
EDUARDO  CALCANO  Sz. 


Beginning  Tuesday,  June  29th,  regular  lectures  in  Spanish 
and  economics  were  held  in  a  splendid  room  in  the  National 
Library  of  Venezuela  placed  at  the  disposal  of  our  group.  The 
Director  of  the  Library,  Dr.  Manuel  Segundo  Sanchez,  very 
graciously  and  with  considerable  pains  furnished  the  students 
with  all  books,  documents,  and  information  they  required,  and 
during  our  entire  stay  in  Caracas  did  all  in  his  power  to  make  us 
comfortable  and  render  our  work  successful.  Dr.  Sanchez 
deserves  the 'gratitude  of  the  University. 

The  Minister  of  Public  Instruction,  Dr.  Rafael  Gonzalez 
Rincones,  kindly  gave  the  students  letters  of  introduction  to 
the  persons  in  charge  of  the  different  government  offices  who 
were  in  a  position  to  furnish  them  the  most  accurate  information 


X  '  X  //-'•'  '        X  X    X"'     '  w-y   •     xC 

„„,,„/,'  s,s>/s,  ,?,„*/,-  „,/$„„/.•  ,4,,,;,,,s,^,,/,,. 


'st'w,,.,  2»,.,,*,,,,p,,,   ',-/.  S,',/jsfs,    s,s,j/jf/,    J/(/s>^,,/, /" ;/*„„,/.  ,'/£„,,    ,s/,s;s,s, ',.,„„ 

<pss/ssf',s/s     f**Sssss/SsfS£rd<~ssSSSSJ0W*?SS9    s/srir    /£'-' "S  / .    ss  /  *  ?>  S '/ssfsss/ss,*   •   ?is-/ss-ssS    sss    sf/tS,  Sss'/sss 

^~~*2".,/~'*~~ /&r'  ' r  .  , 

/ssss   sr  /.*    ^       ^^VVrfVV>V     ^xx  xy      'S  s* -u    S^s/s/s   ss,,.;    s/s    sj/tsyss     ssr  fs  ,    s,'.,/fs/s    s//,,//,    •     S/   ;s.* 

xX  ^/    "./*//  -/f '  // '       /       y  /     / 

„„/,:.    '/,*,';„/,,,.<   ,  „„.,,    .„,„,„;    ..„„//,,;„„,/, 


REPLY  OF  UNIVERSITY  OF  CARACAS  TO  GEORGETOWN 


Venezuela  Report  21 

on  the  assigned  topics.  Furthermore,  all  offices  were  thrown  open 
to  the  Georgetown  students,  and  all  the  public  officials  placed 
themselves  at  their  disposal  whenever  they  went  to  them  in 
search  of  information  or  help. 

The  work  of  the  students  was  supplemented  by  several  enter- 
tainments, such  as  a  luncheon  given  by  the  students  of  the  Vene- 
zuela in  the  Normal  School;  a  reception  tendered  by  the  Semin- 
ary of  Caracas,  with  the  attendance  of  the  Archbishop  and  the 
Nuncio;  a  theatrical  function  in  the  National  Theatre;  a  picnic 
in  a  grove  called  Los  Chorros;  a  visit  to  an  industrial  exhibition 
where  they  learned  of  the  remarkable  progress  made  by  that 
country  in  recent  years;  and  finally  a  concert  and  theatrical  per- 
formance by  the  College  of  San  Francisco  de  Sales,  at  which  the 
"Star  Spangled  Banner"  was  sung  by  the  students  and  the 
United  States  flag  and  the  Georgetown  colors  were  displayed 
together  with  the  Venezuelan  flag. 

Onfone  occasion  the  Federation  of  Students  held  a  reception 
at  the  School  of  Political  Sciences  in  honor  of  the  Georgetown 
students.  Addresses  were  delivered  by  the  president  of  the 
Federation  and  by  your  representative,  who  took  occasion  to 
describe  some  of  the  characteristics  of  student  life  in  the  United 
States,  which  could  not  but  be  of  interest  to  students  in  other 
countries,  terminating  his  remarks  with  the  expression  of  a  sin- 
cere wish  for  closer  relations  between  the  students  of  the  Uni- 
versity of  Caracas  and  those  of  Georgetown. 

The  College  of  San  Francisco  de  Sales  from  the  first  day 
opened  its  doors  to  the  students  of  Georgetown,  who  found  there 
a  real  home,  and  they  certainly  used  it  to  their  best  advantage, 
playing  tennis,  baseball,  and  mingling  freely  with  the  students 
and  the  persons  in  charge  of  that  institution.  The  Reverend 
Jeronimo  Gordini,  Director  of  the  College,  Dom  Pardo  and 
other  professors  of  the  establishment  deserve  the  gratitude  of 
our  University. 

The  authorities  of  the  Military  Academy  of  Venezuela, 
realizing  that  most  of  the  Georgetown  students  who  were 
visiting  that  country  had  seen  service  in  the  United  States  Army, 
tendered  them  a  reception  on  the  Fourth  of  July ,  at  which  many 
distinguished  ladies  and  gentlemen  of  Caracas  were  present. 
The  cadets  gave  an  exhibition  drill,  after  which  tea  was  served 
in  the  large  hall  of  the  Academy,  which  had  been  beautifully 


22  School  of  Foreign  Service 

decorated  with  flowers  in  combinations  representing  the  colors 
of  the  United  States  and  Venezuela.  The  Director  of  the 
Academy  addressed  the  Georgetown  men,  welcoming  them 
cordially;  and  your  representative  answered  in  the  following 
terms: 

"Mr.  Director,  Officers  and  Students  of  The  Military 
Academy,  Ladies  and  Gentlemen: 

"The  idea  of  country  finds  expression  in  certain  symbols 
which,  powerfully  impressed  in  the  hearts  of  men,  lead  them 
to  great  deeds,  even  to  the  sacrifice  of  their  lives,  for  princi- 
ples radicated  in  their  hearts  and  minds  from  childhood. 
Those  symbols  are  the  flag,  the  national  anthem  and  the 
army, 

"The  army  is  a  country  itself,  converted  into  a  weapon 
of  protection  and  defense,  and  is  constituted  not  only  of 
men  who  form  the  ranks  of  the  present,  but  also  of  the 
glorious  traditions  of  the  men  who  have  formed  the  ranks 
of  days  gone  by. 

"Armies  are  heirs  to  a  rich  legacy  of  honor,  and  in 
increasing  that  legacy  and  leaving  it  to  their  successors, 
they  bequeath  the  noblest  ideals  of  unsurpassed  patriotism. 

"Were  we  to  institute  a  comparative  study  of  the 
achievements  of  the  armies  of  the  various  countries  of  the 
world,  we  should  find  that  no  one  of  them  surpasses  the 
Venezuelan  army  in  the  glory  of  its  traditions.  You  are 
the  descendants  and  the  followers  of  those  men  who,  under 
the  guidance  of  Bolivar's  mighty  genius,  traversed  this 
continent  holding  aloft  the  flag  of  liberty,  creating  countries 
wherever  they  went,  and  writing  with  their  own  blood  the 
supreme  epic  of  South  American  independence.  You 
students  of  this  Academy  are  the  hope  of  your  country. 
She  trusts  you  as  a  fond  mother  trusts  in  the  love  and  pro- 
tection of  her  vigorous  growing  sons.  You  have  an  inheri- 
tance of  which  you  may  well  be  proud.  This  inheritance 
imposes  upon  you  a  great  responsibility.  You  are  to 
increase  it,  never  to  imperil  it.  You  will  never,  I  am  confi- 
dent, tarnish  the  purity  of  Venezuela's  glory  by  not 
exemplifying  the  highest  ideals  of  life  or  by  not  striving  in 
every  way  for  the  promotion  of  Venezuela's  welfare. 

"These  young  Americans  who  are  here  among  you  have 
been  soldiers,  and  with  the  fellowship  of  comrades  they  are 
here  in  intimate  communication  with  you,  feeling  a  deep 
sense  of  respect  for  the  sons  of  a  sister  republic  which  their 
fathers  have  long  appreciated  and  loved.  They  extend  the 
hand  of  brotherhood  and  ask  you  to  believe  that  their  pur- 
poses are  also  yours — the  best  service  to  their  country  and 


Venezuela  Report 


23 


the  preserving  of  the  sacred  inheritance  of  honor  handed 
down  to  them  by  their  forefathers. 

"Wherever  patriotism  is  alive,  wherever  there  exist  the 
same  inspiration  and  the  same  lofty  purposes,  comradeship 
is  not  a  mere  formula,  but  a  union  of  souls.  We  feel  that 
we  have  seen  the  very  soul  of  Venezuela,  and  when  we 
leave  your  hospitable  Academy  we  shall  carry  away  with 
us  a  deep  respect  and  admiration  for  your  country,  for 
your  institutions  and  for  your  army. " 

On  the  Fourth  of  July  wreaths  were  deposited  on  the  tomb  of 
Bolivar  and  statue  of  Washington.  Addresses  were  delivered 
on  the  latter  occasion  by  the  president  of  the  Students' 
Federation,  Mr.  Atilano  Carnevali,  and  at  the  former  ceremony 
by  your  representative. 

A  most  pleasant  interruption  in  our  work  was  a  four-day 
automobile  trip  which  lasted  from  Sunday,  July  llth,  to  Wedes- 
day,  July  14th,  and  which  was  provided  by  the  Minister  of 
Public  Instruction. 

On  Sunday  morning  all  arose  at  about  three  o'clock,  and  after 
taking  coffee,  we  boarded  automobiles  in  the  Plaza  Bolivar, 
from  which  point  a  start  was  made  at  five  o'clock.  I  shall  not 
undertake  to  describe  the  wonderful  Venezuelan  mountains  and 
valleys.  They  must  be  seen  to  have  their  grandeur  appreciated. 
The  automobile  roads  passing  through  the  valleys  and  over  the 
mountains  are  as  good  as  can  be  found  anywhere  in  this  country, 
and  it  is  a  matter  of  great  surprise  that  so  few  tourists  visit 
Venezuela,  where  the  scenery  has  no  superior  in  beauty,  where 
the  climate  is  unsurpassed  in  mildness  and  healthfulness,  the 
safety  of  travelers  is  as  secure  as  in  the  best  streets  of  a  well- 
policed  city,  and  where  the  comforts  of  traveling — at  least  by 
automobile — are  as  great  as  could  be  found  in  the  United  States, 
not  to  mention  the  extreme  courtesy  of  the  Venezuelans,  a 
quality  which  is  not  shallow,  but  comes  from  the  heart  and 
makes  all  foreigners  feel  very  much  at  home. 

At  6:15  A.  M.  the  group  reached  the  little  town  of  Los  Teques 
enveloped  in  a  morning  mist,  the  stillness  broken  by  the  ringing 
of  the  bells  of  a  little  chapel,  calling  the  faithful  to  worship. 
We  left  the  automobiles  and  entered  the  church,  and  had  one  of 
the  most  charming  experiences  of  our  lives  by  attending  the 
service  in  that  quiet  country  shrine. 


24 


School  of  Foreign  Service 


About  8:30  A.  M.  we  arrived  at  a  place  called  Guayas,  where 
we  had  an  excellent  breakfast.  From  there  we  continued  our 
trip  through  the  valley  of  Aragua,  which  lies  to  the  west  of  the 
valley  of  Caracas.  The  entire  valley  of  Aragua  is  rich  with 
memories  of  Bolivar  and  the  struggle  for  independence.  There 
stands  his  old  farm,  San  Mateo,  made  sacred  by  the  memories  of 
Captain  Ricaurte,  who  blew  himself  and  an  hostile  army  to 
pieces  rather  than  allow  the  ammunition  of  the  patriots  to  fall 
into  the  hands  of  their  foes.  There  lies  the  town  of  La  Victoria, 
where  the  brave  general  Ribas  defeated  the  royalists  with  the 
aid  of  the  students  of  the  city  of  Caracas.  Every  plain,  hill, 
brook  and  forest  seems  to  speak  of  Venezuela's  epic  fight  for 
independence. 

At  12:30  we  stopped  at  a  place  called  San  Juan  de  Los  Morros, 
where  we  enjoyed  a  bath  in  the  sulphur  springs,  had  luncheon  as 
the  guests  of  the  Minister  of  Public  Instruction,  and  had  the 
pleasure  of  meeting  the  president-elect,  the  provisional  president, 
and  several  other  high  officials  of  the  Republic.  From  San 
Juan  de  Los  Morros  we  continued  to  Maracay,  a  city  of  about 
15,000  inhabitants,  where  the  president-elect,  who  is  the  Com- 
mander-in-Chief  of  the  Army,  generally  resides. 

Leaving  Maracay  early  Monday  morning  and  crossing  the 
mountain  range  which  divides  the  valley  of  Aragua  from  the 
seashore,  we  journied  to  the  port  of  Ocumare  de  la  Costa.  The 
road  is  a  constant  marvel.  Carved  in  the  live  rock  of  the 
mountain,  it  climbs  from  the  lowland  surrounding  Lake  Val- 
encia up  to  the  clouds,  and  actually  pierces  the  clouds  until  a 
spot  called  Rancho  Grande  is  attained.  From  there  it  begins 
to  descend  towards  the  Caribbean  Sea.  On  the  south  side  of 
the  mountains  the  beautiful  lake  of  Valencia  can  be  seen,  visible 
at  times  in  its  complete  extension,  surrounded  by  forests,  sugar- 
cane plantations  and  cattle  farms.  The  hills  to  the  south  are 
covered  with  coffee  plantations.  There  several  small  rivers  finish 
their  courses.  Stretching  down  to  the  seashore  may  be  seen 
numerous  cocoa  and  rubber  plantations. 

Ocumare  de  la  Costa  is  a  very  fine  natural  port.  There 
Miranda  and  Bolivar  landed  with  their  troops  to  fight  for  inde- 
pendence, and  at  it,  too,  ten  young  Americans  landed  to  join 
the  Independent  Army  of  Venezuela.  All  these  youths  were 
made  prisoners  by  the  Spaniards  and  executed.  We  saw  the 


K 


Venezuela  Report 


25 


two  beautiful  monuments  erected  to  their  memory,  one  in  Mara- 
cay  and  another  in  Puerto  Cabello.  Colonel  Romero,  Comman- 
der of  the  Port,  entertained  us  at  luncheon. 

In  the  afternoon  we  drove  back  by  the  same  road  and  had  still 
time  to  visit  Las  Delicias,  where  there  is  a  good  zoological 
museum  containing,  among  other  animals,  beautiful  specimens 
of  herons,  which  produce  the  famous  aigrettes.  It  is  to  be  noted 
that  there  is  in  Venezuela  a  very  stringent  law  against  the  killing 
of  herons  or  even  against  the  plucking  of  their  feathers.  The 
aigrettes  are  to  be  obtained  only  in  the  places  where  the  herons 
assemble  and  drop  their  feathers  naturally,  at  certain  periods 
of  the  year.  In  view  of  these  facts  it  seems  reasonable  to  suggest 
that  our  law  prohibiting  the  importation  of  aigrettes  should 
make  an  exception  of  feathers  coming  from  Venezuela. 

After  spending  a  second  night  in  Maracay,  we  left  on  Tuesday 
for  a  trip  around  Lake  Valencia.  We  visited  a  cream  and  cheese 
factory  where  the  most  modern  machinery  is  used  in  multiplying 
the  products  of  the  dairy  industry.  On  our  way  we  visited  the 
town  of  Giiigue,  where  we  were  the  object  of  the  most  courteous 
attention  from  General  Romero  Galvan,  who  accompanied  us  to 
the  great  coffee  plantation  of  El  Trompillo,  owned  by  the 
Pimentel  family,  two  members  of  which,  Don  Antonio  and  Don 
Manuel,  made  our  brief  stay  as  pleasant  as  it  was  instructive. 

From  El  Trompillo  we  proceeded  to  inspect  a  sugar  plantation 
called  Tacarigua,  where  the  overseer  in  charge  of  the  machinery 
explained  to  the  students  all  the  processes  in  the  preparation  of 
cane  sugar.  From  Tacarigua  we  continued  to  Valencia,  where 
we  arrived  in  the  afternoon,  having  had  luncheon  in  a  small 
town  called  Bucarito.  Valencia  has  been  called  the  most 
beautiful  of  tropical  cities  and,  indeed,  it  deserves  the  distinction. 
From  Valencia  we  continued  around  the  lake  until  we  arrived 
again  in  Maracay,  after  having  once  more  admired  the  beauty 
and  splendid  condition  of  the  Venezuelan  automobile  roads. 

Our  last  night  we  spent  in  Maracay,  and  on  Wednesday 
started  back  to  Caracas.  The  return  trip  was  made  more  slowly 
to  enable  us  to  stop  at  several  historical  places  and  hear  the 
interesting  explanations  very  kindly  given  by  Dr.  Manuel 
Segundo  Sanchez,  Director  of  the  National  Library,  who  was 
our  kind  and  learned  guide  and  friend  throughout  the  trip.  At 
San  Mateo,  we  stopped  and  took  several  pictures  of  the  house 


26  School  of  Foreign  Service 

where  Captain  Ricaurte  made  the  supreme  sacrifice  of  his  life 
for  the  independence  of  Venezuela.  In  La  Victoria  we  visited 
several  places  of  historic  interest  and  had  a  picture  taken  of  the 
statue  of  the  heroic  general  Ribas.  In  Guayas  we  remained  for 
over  an  hour  resting.  Late  in  the  afternoon  we  arrived  in  Cara- 
cas delighted  with  our  trip  and  warmly  grateful  both  to  the 
Minister  of  Public  Instruction,  to  whose  kindness  we  owed  the 
valuable  experience,  and  to  Dr.  Manuel  Segundo  Sanchez,  to 
whom  we  owed  most  of  the  profit  and  pleasure  derived  from  the 
expedition. 

Recitations  and  research  work  continued  as  before  until 
Thursday,  July  29th,  when  we  had  the  last  formal  class.  It 
would  be  of  interest  to  recount  some  of  the  minor  activities  of 
the  members  of  the  class  if  time  and  space  would  permit.  For 
instance,  several  students  were  charged  to  keep  a  detailed  and 
accurate  thermometric  and  barometric  record  in  order  to  demon- 
strate the  fact  that  Caracas  has  a  clearer  and  less  oppressive 
climate  in  summer  than  any  of  the  great  cities  of  the  north 
Atlantic  seaboard  of  the  United  States.  On  Friday,  the  30th, 
a  written  examination  in  Spanish  was  held  from  9  to  11,  and  at 
11  o'clock  the  students  proceeded  to  the  School  of  Social 
Sciences  where  our  course  was  to  terminate  with  a  lecture 
delivered  by  Dr.  Pedro  Itriago  Chacin,  head  of  the  diplomatic 
service  of  the  government,  professor  of  international  law,  and  a 
well  known  internationalist  of  Venezuela.  In  the  appendix  of 
this  report  appears  a  translation  of  Dr.  Itriago's  address.  At 
the  close  of  the  inspiring  address  of  Dr.  Itriago  Chacin,  a  student 
in  his  course,  Don  Pedro  La-Riva  Vale,  briefly  expressed  the 
sentiment  of  fraternal  feelings  of  Venezuelan  students  for  the 
Georgetown  students.  Some  sentences  from  his  remarks  are  not 
unworthy  of  quotation. 

"Our  satisfaction  is  greater  when  we  turn  our  eyes  to 
the  pages  of  our  diplomatic  history,  for  we  can  not  forget, 
if  we  are  grateful,  that  North  America,  ever  ready  to  foster 
noble  ideas  of  Freedom,  has  always  encouraged  those  who 
aspire  to  Liberty,  with  the  same  ardor  which  she  inspired 
in  the  heart  of  her  legionaries  in  the  crusade  for  her  freedom. 

"At  the  time  of  our  emancipation,  following  her  own 
indications  that  Congress  would  duly  receive  the  repre- 
sentatives of  those  who  fought  constantly  to  give  us  a  free 
country,  the  United  States  on  June  26,  1810,  sent  to  the 


Venezuela  Report 


27 


Supreme  Council  of  Caracas  Mr.  Lowry,  in  the  capacity 
of  financial  agent,  who  had  the  duties  proper  to  a  consular 
position  although  he  was  not  received  in  this  capacity 
because  it  was  not  allowed  by  the  form  of  government 
existing  at  that  time.  In  1811,  the  two  Houses  manifested 
their  sympathy  and  interest  for  the  newly-born  sover- 
eignties; it  was  Democracy  sanctioning  the  conquests  of 
Liberty.  Later,  Scott  was  made  Agent  of  Supplies,  and 
Lowry,  Consul  in  fact;  and  Congress  voted  credits  to 
establish  legations,  thus  sanctioning  our  introduction  into 
the  community  of  free  countries.  In  1824,  commercial  ties 
were  established  which,  strengthened  day  by  day,  are  the 
vital  arteries  giving  force  to  the  economic  organism  of  our 
nationalities. 

"Monroe,  when  he  defined  in  his  celebrated  doctrine  our 
rights  to  independence  and  formulated  the  prohibition  to 
Europeans  against  colonizing  in  the  new  world,  sanctioned 
in  the  most  emphatic  manner  the  highest  achievement  of 
American  rights.  "America  for  Americans," — without 
any  spurious  interpretation  such  as  some  have  given  to  it, — 
is  the  condensation  of  the  efforts  of  the  champions  of  the 
freedom  of  America,  of  this,  our  America,  which  has  known 
how  to  defend  its  right  amid  the  vibrations  of  its  tempes- 
tuous seas!  Bolivar,  breaking  the  chains  of  slavery  with 
an  invincible  sword,  and  Monroe,  establishing  a  new  con- 
cept of  right,  understand  each  other.  Subsequently  the 
Monroe  doctrine  was  our  shield  in  many  transcendental 
events  of  our  international  life.  It  was  the  formidable 
weapon  opposing  the  predatory  ambition  of  England  in 
1895,  when  Grover  Cleveland  valiantly  forced  her  to 
submit  to  arbitration  her  pretentions  to  the  Venezuelan 
territory  near  the  border  of  British  Guiana.  It  was  also 
our  support  in  the  incident  brought  about  by  Count  Maglia- 
no,  when  he  sought  to  obtain  pressure  from  his  own  govern- 
ment, as  well  as  from  Germany,  France  and  Belgium,  on 
Venezuela.  As  for  the  coalition  between  Italy,  England 
and  Germany,  those  sorrowful  days  are  not  far  distant, 
when  our  territory  saw  itself  so  seriously  threatened,  until 
finally  the  opposing  parties  agreed  to  submit  their  conten- 
tion to  the  Supreme  Tribunal  of  the  Hague." 

In  answer  to  the  stirring  words  of  Dr.  Itriago  Chacin  and  Mr. 
La-Riva  Vale,  your  representative  expressed  genuine  hope  in 
the  recovery  and  substantial  progress  of  the  principles  of  inter- 
national law  based,  more  than  ever,  squarely  upon  a  thoroughly 
enlightened  and  responsive  public  opinion.  Democracy  would, 
in  the  course  of  time,  and  perhaps  in  a  surprisingly  reasonable 


28  School  of  Foreign  Service 

brief  time,  come  to  contain  a  genuine  and  significant  meaning 
and  guarantee  of  world  peace.  Perhaps  at  present  we  are 
passing  through  reactions  natural  and  inevitable  after  the 
stupendous  conflict  from  which  we  have  just  emerged,  but  those 
who  are  able  to  measure  the  progress  of  culture  on  a  larger  scale 
than  the  months  and  years,  are  not  without  great  hope  and 
substantial  confidence.  He  closed  his  remarks  with  the 
expression  of  sincere  thanks  for  the  generous  cooperation  and 
sincere  cordiality  of  the  authorities  and  students  alike  of  the 
professional  and  academic  world  of  Caracas. 

On  August  7th  a  reception  was  given  at  the  School  of  Politi- 
cal Sciences  at  which  Dr.  Jose  Santiago  Rodriguez,  Director  of 
the  School,  who  possesses  a  wide  acquaintance  with  commercial 
and  economic  conditions  in  the  United  States  by  reason  of  a 
careful  survey  of  them  made  in  the  interest  of  his  Government, 
eloquently  expressed  the  hope  of  closer  relations  between  the 
two  countries,  not  merely  with  reference  to  commerce  and 
investment,  but  between  the  youth  of  both  lands  and  on  as 
profoundly  spiritual  plan  as  possible. 

Enthusiastic  assurances  of  the  sentiments  of  cordial  solidarity 
towards  North  America  animating  the  sentiments  of  Venezuela 
was  voiced  by  a  student  of  the  School  of  Political  Science,  Don 
Anibal  Villasmil  Gabaldon.  Again  it  was  the  pleasant  duty  of 
your  representative  to  express  the  appreciation  of  the  students 
for  all  the  courtesies  and  sincere  manifestations  of  friendship 
showered  upon  them,  and  to  renew  the  expression  of  confidence 
that  the  work  of  the  University  of  Caracas  would  go  far  in  the 
firm  and  enduring  upbuilding  of  an  enlightened  public  opinion, 
which  would  be  regarded  by  the  students  of  North  America  as 
of  the  greatest  service  to  mankind. 

On  Saturday,  July  31st,  two  of  our  students  left  Caracas  for 
the  United  States.  On  Tuesday,  August  3rd,  six  more  students 
left,  and  on  Monday,  August  9th,  the  rest  of  the  students  and 
your  representative  embarked  for  New  York.  The  steamer 
stopped  for  thirty-six  hours  at  Puerto  Cabello,  for  some  hours  at 
Curazao,  and  for  twenty-four  hours  at  San  Juan  de  Puerto  Rico. 
On  Friday,  August  20th,  we  landed  in  New  York,  and  thus  came 
to  an  end  the  first  university  field  work  in  economics  directed 
towards  the  expansion  of  American  foreign  trade. 

During  our  stay  in  Caracas,  the  physical  welfare  of  the  stu- 


. 


Venezuela  Report 


29 


dents  was  not  neglected  and  consequently  there  were  no  serious 
cases  of  illness.  The  change  of  food  occasioned  some  minor 
ailments  but  no  alarming  results  occurred.  All  the  members  of 
the  party  were  comfortably  lodged,  and  in  all  respects  well 
taken  care  of  by  orders  of  the  Minister  of  Public  Instruction. 
They  had  occasion  also  to  engage  in  sports,  notably  in  baseball. 
Three  public  games  were  played,  the  first  with  the  students  of 
the  School  of  San  Francisco  de  Sales,  the  second  with  the  Ameri- 
can commercial  employees  of  Caracas,  and  the  third  with  the 
students  of  the  College  of  San  Francisco  de  Sales,  in  which  we 
won  a  loving  cup  offered  by  the  Minister  of  Public  Instruction. 
Tennis  was  frequently  enjoyed  and  excursions  to  the  beautiful 
mountain,  Avila,  were  also  organized. 

Every  opportunity  was  offered  our  students  to  mingle  socially 
with  the  best  families  of  Caracas.  Thus,  they  had  not  only  the 
means  to  practise  Spanish,  but  also  a  rare  opportunity  to  enjoy 
intimate  contact  with  the  character  of  the  Venezuelan  people, 
whose  constant  kindness  and  genuine  courtesy  made  a  deep  and 
lasting  impression  on  the  Georgetown  boys. 

Among  the  persons  entitled  to  our  gratitude,  besides  those 
already  mentioned,  are  Dr.  Vicente  Lecuna,  a  senator  of  the 
country  and  the  President  of  the  Banco  de  Venezuela,  a  man 
universally  respected  by  reason  of  his  high  moral  character,  who 
was  instrumental  in  obtaining  for  us  valuable  information  and 
who  showed  himself  tireless  in  his  efforts  to  help  our  students  at 
every  turn  and  on  any  subject;  Dr.  Victor  V.  Maldonado,  the 
Director  of  the  Industrial  Exhibition;  Mr.  Atilano  Carnevali, 
President  of  the  Federation  of  Students,  and  all  the  members  of 
the  Federation;  the  Reverend  Evaristo  Ipifiazar,  S.  J.,  Rector 
of  the  Seminary;  Monsignor  Nicolas  E.  Navarro,  Apostolic 
Prothonotary,  and  all  the  dignitaries  of  the  Church,  among 
whom  special  mention  is  respectfully  made  of  Monsignor  Rincon 
Gonzalez,  the  Archbishop  of  Venezuela,  and  His  Excellency, 
Monsignor  Marchetti,  the  Papal  Nuncio.  Dr.  Manuel  C. 
Correa  of  the  Department  of  Public  Instruction,  the  Director 
of  the  Normal  School  and  the  faculties  of  the  University  and  of 
the  different  institutions  of  learning  in  Caracas  also  deserve  our 
grateful  remembrances. 

The  Venezuelan  press  was  extremely  kind  to  us  in  its  remarks. 
An  expression  of  sincere  thanks  is  due  to  El  Nueuo  Diario,  El 


30 


School  of  Foreign  Service 


Imparcial,  El  Universal,  Religi6n,  Actualidades,  Billiken 
other  publications. 

As  a  last  honor,  your  representative  was  decorated  with  the 
medal  of  "Public  Instruction"  by  the  Executive  of  Venezuela, 
according  to  a  decree  of  July  27,  1920,  published  in  the  Official 
Gazette  of  the  country  on  Friday,  August  13,  of  the  same  year, 
No.  14,138.  In  his  answer  to  the  communication  of  the 
Minister  of  Public  Instruction  notifying  him  of  this  honor, 
your  representative  made  it  clear  that  this  recognition  is  very 
superior  to  his  personal  attainments  and  is  to  be  considered  an 
honor  conferred  on  the  School  of  Foreign  Service  rather  than 
on  himself.1 

Respectfully  submitted, 

G.  A.  SHERWELL. 
To 

EDMUND  A.  WALSH,  S.  J., 
Regent  of  the  School  of  Foreign  Service, 
Georgetown  University, 
Washington,  D.  C. 


lThe  Medal  of  Public  Instruction  has  since  been  conferred  by  the  President 
of  Venezuela  on  John  B.  Creeden,  S.  J.,  President  of  Georgetown  University  and 
Edmund  A.  Walsh,  S.  J.,  Regent  of  the  School  of  Foreign  Service. 

Dr.  Sherwell  was  further  honored  by  the  Venezuelan  Government  with 
high  distinction  of  membership  in  the  "Order  of  the  Liberator." 


PART  II 


STUDENT  REPORTS 


THE  ECONOMIC  HISTORY  OF  VENEZUELA 

REFERENCES  USED. — History  of  South  America,  W.  H.  Koebel;  With  the 
Trade  Winds,  Ira  Nelson  Morris;  The  Land  of  Bolivar,  Statesman's  Yearbook, 
1918-1919;  Reports  of  International  High  Commission;  Reports  of  Minister  of 
Finance  (Venezuela);  Official  Gazette  of  Venezuela. 

GEOGRAPHICAL 

The  United  States  of  Venezuela  occupies  the  northernmost 
part  of  South  America  bounded  on  the  ocean  side  by  the  Atlantic 
and  the  Caribbean  and  on  the  land  side  by  British  Guiana, 
Colombia  and  Brazil.  It  has  an  area  of  393,976  square  miles 
(1,020,396  kilometers)  with  a  population,  however,  of  only 
2,848,121  or  approximately  7  to  the  square  mile.  This  is  in 
striking  contrast  with  the  figures  obtained  from  the  United 
States  Census  of  1920  which  shows  an  average  population  of 
35.5  to  the  square  mile. 

Venezuela  is  divided  geographically  into  four  zones,  the 
llanos  or  large  plains  and  river  valleys  which  afford  excellent 
opportunities  for  the  raising  of  cattle,  the  mountain  section, 
formed  by  three  mountain  ranges,  thetabte  lands  or  plateaus  and 
the  mining  zone.  Venezuela  covers  the  same  extent  of  super- 
ficial area  as  France,  Belgium,  Holland,  Denmark,  Switzerland, 
Portugal,  the  United  Kingdom  of  Great  Britain  and  Ireland. 
The  country  is  especially  fortunate  in  having  an  immense  coast 
line  which  extends  over  1,800  miles.  It  has  32  ports,  some  50 
creeks  and  bays,  7  peninsulas  and  7  straits.  Besides  the  Lake 
of  Maracaibo,  which  is  the  largest  and  of  special  importance, 
there  are  also  204  smaller  lakes,  60  rivers,  8  of  which  are  of  the 
first  magnitude.  Along  with  the  variety  of  physical  features 
Venezuela  has  a  variety  of  climate  which  permits  the  raising  of 
many  crops  of  the  tropical  and  temperate  zones. 
31 


32  School  of  Foreign  Service 


POLITICAL 


Venezuela  was  sighted  by  Columbus  on  his  third  voyage  in 
1498,  when  he  entered  the  Gulf  of  Paria  and  sailed  along  the 
Delta  of  the  Orinoco.  In  1550  this  territory  became  the  Cap- 
tain-generalcy  of  Caracas  and  remained  under  Spanish  rule 
until  early  in  the  nineteenth  century. 

The  modern  history  of  Venezuela  dates  from  the  year  1813 
when  Simon  Bolivar  took  up  arms  against  the  Spanish  Govern- 
ment and  finally  defeated  them  at  the  Battle  of  Boyaca  on  Aug- 
gust  7,  1819.  Two  years  later  at  Carabobo  the  Royalist  forces 
were  entirely  routed  and  an  end  was  put  to  Spanish  control  in 
South  America. 

Simon  Bolivar  is  venerated  in  Venezuela  as  the  father  of  his 
country,  a  title  which  he  richly  deserves.  He  was  born  in  Cara- 
cas in  1783  and  from  his  earliest  years  his  life  seemed  to  be 
dedicated  to  the  cause  of  freedom.  As  a  young  man  he  studied 
in  France  and  was  an  eye  witness  to  many  of  the  scenes  of  the 
French  Revolution,  so  that  the  spirit  of  freedom  and  revolt 
against  despotic  government  was  further  intensified  in  him. 

After  his  victory  over  the  Spanish  forces  in  1821  Bolivar  was 
formally  appointed  President  of  Colombia  which  then  included 
the  present  republics  of  Venezuela  and  Ecuador.  In  1830 
Venezuela  separated  from  Colombia  and  became  an  independent 
state.  The  remainder  of  Bolivar's  public  career  was  devoted 
to  tireless  labor  in  behalf  of  his  people  that  they  might  enjoy 
a  stable  and  beneficial  government.  He  died  at  Santa  Marta 
on  December  17,  1830,  almost  penniless  after  having  labored 
throughout  his  entire  life  in  the  interest  of  his  native  country. 

On  March  30,  1845  Spain  recognized  the  independence  of 
Venezuela  in  the  Treaty  of  Madrid. 

A  period  of  successive  revolutions  followed  until  finally  in 
1870  Guzman  Blanco  assumed  control  of  the  country  as  dic- 
tator. Evading  the  provisions  of  the  constitution  which 
prohibits  the  election  of  a  President  for  successive  terms, 
Blanco  successfully  arranged  through  two  decades  for  the 
nomination  of  some  one  of  his  colleagues  who  was  to  hold  ofBce 
as  a  figurehead. 

The  people  finally  tired  of  this  procedure  and  in  1889  there 
was  a  revolt  against  the  dictator  which  resulted  in  his  overthrow. 


Venezuela  Report  33 

At  the  elections  which  followed  General  Andueza  Palacios  was 
elected  to  the  presidency,  but  another  revolution  followed  in 
1891,  during  which  Palacios  was  unseated  and  General  Crespo, 
his  vanquisher,  took  up  the  reins  of  government. 

During  the  administration  of  General  Crespo  trouble  arose 
with  Great  Britain  over  the  boundary  between  British  Guiana 
and  Venezuela.  President  Cleveland  intervened  in  1895, 
urging  arbitration  and  finally  in  1899  the  matter  was  amicably 
settled.  This  difference  with  Great  Britain  left  certain  memor- 
ies with  the  Venezuelan  people  which  for  a  long  time  operated 
to  the  discouragement  of  British  capital. 

After  another  series  of  revolts,  General  Cipriano  Castro  became 
president  in  1900.  Internal  disturbances  continued  and  in 
addition  to  this  misfortune,  Castro  ruled  as  a  dictator,  employ- 
ing corrupt  and  revolutionary  methods  which  not  only  aggra- 
vated the  domestic  disease  but  ruined  credit  before  the  nations 
of  the  world.  In  1907  the  Belgium  debt  was  repudiated  and  the 
following  year  trouble  arose  with  Holland  regarding  the  har- 
boring of  refugees  in  Curasao.  Diplomatic  relations  were  also 
broken  off  with  England,  Italy  and  France  during  Castro's 
administration.  Finally,  in  1908  he  found  it  advisable  to  retire 
to  Europe  and  in  his  absence  Juan  Vicente  Gomez,  the  Vice 
President,  took  control  and  was  installed  as  President  in  June, 
1910.  General  Gomez  still  exercises  the  supreme  power  in  his 
capacity  as  Commander-in-Chief  of  the  Army. 

PRODUCTS 

(See  Reports  on  Agriculture,  Minerals,  and  Animal  Indus- 
tries.) 

BANKS   AND   CURRENCY 

There  are  four  national  banks  in  the  country — the  Bank  of 
Venezuela,  the  Bank  of  Caracas,  the  Bank  of  Maracaibo  and 
the  Commercial  Bank.  These  four  banks  issue  paper  currency, 
which  is  not  legal  tender,  although  generally  accepted  as  such. 

Previous  to  the  establishment  of  branch  banks  in  Venezuela 
by  foreign  concerns,  the  majority  of  import  and  export  houses 
doing  business  in  the  Republic  were  engaged  in  domestic  and 
foreign  banking  business.  As  a  general  rule,  these  merchants 
charged  such  a  high  rate  of  interest  that  individuals  could  not 


School  of  Foreign  Service 


improve  their  property  nor  prosper  in  their  regular  agricultural 
pursuits. 

In  1916  the  Royal  Bank  of  Canada  opened  a  branch  in  Caracas 
and  in  several  other  places  in  the  country.  Three  years  later 
the  National  City  Bank  of  New  York  entered  the  field  and 
opened  branches  in  Caracas  and  Maracaibo.  Other  concerns 
which  have  opened  branches  are  the  Anglo-Spanish-American 
Bank,  Ltd.,  The  Commercial  Bank  of  Spanish  America,  Grace 
&  Co.  of  New  York  through  their  branch,  the  Venezuela  Com- 
mercial Company,  and  The  Mercantile  Bank  of  the  Americas. 

The  currency  is  on  a  gold  basis  and  gold  coins  of  foreign 
countries  are  accepted  as  legal  tender.  The  coinage  of  silver 
and  subsidiary  metal  is  restricted. 

The  bolivar,  named  in  honor  of  the  Liberator,  is  the  monetary 
unit  and  contains  1-1000  part  of  a  kilogram  of  gold. 

Gold  coins  are  issued  in  5,  10,  20,  50  and  100  bolivar  pieces. 
Silver  coins  are  issued  in  1,2^2,5  bolivar  pieces  and  50  and  20 
centimo  pieces.  The  smaller,  token  coins,  are  of  nickel  in  12^2 
and  5  centimo  pieces.  The  five-bolivar  piece  is  commonly 
known  as  the  "fuerte"  and  is  worth  $.96X  in  U.  S.  gold. 

AIDS   TO    ECONOMIC    DEVELOPMENT 

Capital  can  be  supplied  in  either  of  two  ways:  by  investors 
from  foreign  countries  or  through  loans  made  by  the  government 
of  Venezuela  to  individuals  who  are  unable  to  interest  outside 
capital.  For  the  welfare  of  the  country,  the  latter  seems  to  be 
more  advisable,  as  it  would  reach  a  larger  number  of  small 
farmers  who  are  not  in  need  of  large  sums,  and  who  moreover 
are  not  familiar  with  the  financial  requirements  of  foreign 
investors. 

A  provision  similar  to  the  Federal  Farm  Loan  Act  passed  in 
the  United  States  in  July,  1917,  would  be  of  immense  importance 
in  aiding  agriculture  enterprises. 

The  lack  of  immigration  has  long  been  a  serious  problem  in 
the  economic  development  of  this  country;  it  can  only  be  said 
that  the  government  has  this  question  under  discussion  and 
probably  something  will  soon  be  done  to  induce  immigrants  to 
come  to  Venezuela  where  a  multitude  of  opportunities  await 
them.1  However,  it  will  be  necessary  for  the  government  to 


1See  report  on  new  Immigration  Act,  pp.  39-41. 


Venezuela  Report 


35 


assure  this  class  of  prospective  citizens  that  the  bulk  of  desirable 
land  is  still  in  the  hands  of  small  holders  and  that  the  power  of 
the  government  is  sufficient  to  protect  the  small  farmers. 

In  spite  of  the  fact  that  the  country  is  very  sparsely  settled, 
the  present  railroad  system  is  inadequate  and  large  tracts  of 
land  are  of  little  or  no  value  because  of  the  expense  of  handling 
the  products.  Obviously,  the  products  of  these  areas  can  not 
successfully  compete  in  the  world's  markets,  if  the  margin  of 
profit  has  been  absorbed  antecedently  by  high  transportation 
expenses. 

The  oldest  railroad  is  the  Bolivar  Railroad  which  was  begun 
in  1873.  It  is  a  24-inch  gauge,  176^  kilometers  long  and 
extends  from  Tuscasas  to  Barquisimeto.  The  La  Ciella  line 
was  authorized  in  1880  and  has  a  91-meter  gauge  and  a  length 
of  81>^  kilometers. 

The  most  important  road  and  one  of  the  few  which  has  paid 
any  returns  is  the  La  Guaira  to  Caracas  line,  which  is  about 
23  miles  long  and  was  built  by  British  capital. 

In  passing  it  can  truly  be  said  that  railroad  development  has 
been  retarded  as  much  by  political  insecurity  as  by  the  unde- 
veloped industrial  state  of  the  country,  the  topography  and  the 
expense  of  securing  railroad  equipment.  However,  the  present 
administration  is  giving  considerable  attention  to  this  need  and 
an  extensive  program  of  wagon-road  building  is  now  in  process 
of  construction  and  plans  have  also  been  perfected  for  extensive 
railroad  expansion. 


GOVERNMENT 

The  Republic  of  Venezuela  was  founded  in  1830  by  separation 
from  the  other  members  of  the  "Free  State"  established  by 
Simon  Bolivar  within  the  limits  of  the  old  Spanish  colony  of 
New  Granada.  The  Constitution  was  modeled  after  that  of 
the  United  States  of  North  America,  but  greater  autonomy  is 
allowed  to  provincial  and  local  governments. 

The  chief  executive  is  the  President,  elected  for  a  term  of  six 
years,  assisted  by  six  ministers  and  a  Federal  Council  of  19 
members.  The  Federal  Council  is  appointed  by  Congress 
every  two  years;  the  Council  chooses  a  President  from  its  own 
members,  who  is  also  President  of  the  Republic.  Neither  the 


School  of  Foreign  Service 

President  nor  members  of  the  Federal  Council  can  be  re-elected 
for  the  following  period. 

The  legislative  branch  of  the  government  is  divided  into  two 
houses  called  the  Senate,  whose  members  are  elected  for  six 
years  by  the  State  Legislatures,  and  the  House  of  Representa- 
tives, whose  members  are  also  elected  for  a  six  year-period,  but 
by  direct  vote,  one  to  each  40,000  inhabitants. 

The  country  is  divided  into  20  States,  2  Territories  and  a 
Federal  District.  The  National  Congress  includes  40  Senators 
and  52  Representatives.  Each  state  has  an  equal  number  of 
representatives,  each  having  a  legislative  Assembly,  whose  mem- 
bers are  chosen  in  accordance  with  its  respective  constitution. 


PROSPECTIVE 

Venezuela  stands  to-day  upon  the  threshold  of  great  interior 
development  especially  in  agriculture  and  cattle-raising.  Her 
position  is  similar  to  that  of  the  United  States  after  the  Civil 
War  when  vast  areas,  sparsely  settled,  lay  awaiting  the  move- 
ment of  population  to  develop  them.  Her  mineral  resources  are 
practically  untouched  and  opportunities  await  foreign  capital- 
ists who  are  familiar  with  the  development  of  new  countries. 

The  political  situation,  however,  should  not  be  neglected. 
W.  H.  Koebel  in  his  "History  of  South  America"  says,  "No 
state  of  South  America  can  show  such  a  perpetual  ferment,  such 
a  fog  of  unrest  and  strife  hanging  over  and  choking  its  devel- 
opment as  this. "  Whether  or  not  the  past  eight  years  of  stable 
government  and  national  prosperity  has  demonstrated  to  the 
people  of  Venezuela  the  proper  course  to  follow  is  a  question 
beyond  the  scope  of  the  present  inquiry. 

In  any  event,  the  foreign  investor  will  be  well  advised  if  he 
places  his  capital  in  Venezuela  only  after  mature  consideration 
of  the  political  changes  of  the  last  two  decades  and  the  ability 
of  the  present  administration  to  carry  through  its  policy  of 
enlightened  development. 

James  F.  Costello. 


Venezuela  Report 


37 


POPULATION,  IMMIGRATION,  EDUCATION 

REFERENCES: 

Census  Bureau,  Caracas,  Venezuela,  July,  1920. 
Memoria  del  Ministro  del  Fomento,  1920. 
Confidential  Report  of  Department  of  Commerce  1919. 
Memoria  de  Instruction  Publica,  1918,  1919,  1920. 
Memoria  de  Obras  Publicas,  1920,  Vol.  1. 
Encyclopaedia  Britannica. 

The  last  official  census  of  Venezuela,  which  was  completed 
in  the  year  1891,  placed  the  population  of  the  country  at 
2,323,527.  According  to  the  Venezuelan  Year  Book  of  1904, 
10%  of  the  people  are  white  and  of  European  descent,  but  by 
far  the  larger  part,  possibly  70%  of  the  total,  is  a  mixed  race 
in  which  white  and  Indian  blood  prevail,  the  remainder  being 
pure  Indian  blood.  It  is  not  to  be  expected  that  the  new 
census,  begun  in  August,  1919,  will  show  any  great  changes 
because  of  the  three  following  reasons:1 

1.  The  neglect  of  sanitation  and  hygiene  in  the  past,  which 
was  responsible  for  a  heavy  death  rate. 

2.  The   numerous   civil  wars  and   revolutions,  which  ended 
however  some  fifteen  years  ago,  when  a  reconstruction  period 
commenced  under  the  present  regime. 

3.  Comparative   lack   of  immigration,    the   actual   increase 
being  balanced  by  the  yearly  total  of  emigration  of  Venezuelans 
to  foreign  countries. 

The  future,  however,  holds  brighter  prospects  due  to  the  fact 
that  remedies  have  been  found  for  the  first  two  causes,  and 
energetic  efforts  are  being  made  to  increase  immigration,  as 
will  be  shown  in  detail  later. 

Within  an  area  of  approximately  394,000  square  miles  the 
greater  part  of  the  people  is  found  in  the  regions  of  Lake  Mara- 
caibo,  the  Federal  District  of  Caracas  and  along  the  Coast,  the 
Southern  and  interior  sections  being  to  a  great  extent  unknown 
and  unexplored.  The  region  of  Barquisimeto  in  the  state  of 
Lara  is  the  most  densely  populated  area,  while  in  Apure  far  to 
the  south  is  found  low  swampy  land,  sparsely  populated,  inter- 

!ln  1917  the  population  was  estimated  as  2,848,121.  The  last  census,  1919- 
1920,  may  show  some  increase. 


38 


School  of  Foreign  Service 


laced  with  a  network  of  rivers,  which  in  the  rainy  season 
cover  the  entire  country  with  a  blanket  of  water,  making  travel 
impossible  for  months  and  mail  deliveries  most  difficult  and 
irregular. 

The  agricultural  zone  extending  along  the  coast  and  inland 
to  the  Orinoco,  employs  20%  of  the  population  in  this  pursuit 
alone,  and  contains  all  the  important  cities  of  Venezuela,  with 
the  exception  of  Ciudad  Bolivar.  The  largest  city  is  Caracas 
with  a  population  (including  the  Federal  District)  estimated 
to-day  .at  137,687,  an  increase  of  47,687  since  1891.  Its  sea-port 
is  La  Guaira,  connected  by  a  railroad  winding  around  23  miles 
of  mountains.  The  second  port  of  importance  is  Puerto  Cabello 
in  the  vicinity  of  Valencia,  the  second  largest  city  of  Venezuela, 
which  has  a  population  estimated  at  64,681.  Maracaibo  with 
48,480  is  the  third  largest  city  in  Venezuela,  being  second  in  the 
country  in  business  importance.  This  last  district  ought  to 
have  the  heaviest  increase  in  the  future  due  to  the  location  of 
the  mines  and  petroleum  wells  in  this  area  which  attract  the 
majority  of  immigrants,  while  its  heavy  coffee  exportations 
offer  a  wide  field  for  investment  and  employment. 

Merida,  and  Barcelona  with  its  port  of  Juanta  which  serves 
the  coal  and  salt  mining  regions,  are  two  important  populous 
regions  while  other  cities  varying  in  population  from  10,000  to 
50,000  are  Ciudad  Bolivar,  Barquisimeto,  Trujillo  and  Juanare. 

A  glance  at  the  following  data,  with  the  last  two  reports 
approximately  estimated,  will  serve  to  show  the  increase. 

1891   official   census    2,323,027         Ratio  per  square   kilometer 22 

1911         "  "      2,743,833  "        "        "  ...  26 

1917         "  "  ...  2,848,121  "        "        "  "  ...  27 


The  most  heavily  populated  districts  are: 

Federal  District....    137,687     Density  per  square   kilometer 

Carabobo 193,234 

Nueva  Esparta 52,431 

Trujillo 185,624 

The  least  populated  states  are: 

Bolivar     69,938 

Apure 30,008 


...  70.2 
..43.9 
...39.6 

...24.4 


Density  per  square   kilometer 


.04 


The  territories  which  have  had  no  increase  since  1891  : 


Amazonas  ..................    45,097 

Delta-Amaeuro.  .........      9,243 


Density  per  square   kilometer 02 

.    .02 


Venezuela  Report 


39 


Revised  statistics  June  19,  1920,  for  the  city  of  Caracas: 

Catedral 12,229 

Altagracia......  14,280 

Santa  Teresa 6,050 

Santa  Rosalia „.  19,284 

Candelaria..... _ 13,344 

San  Juan „  16,436 

La  Pastora...... 11,409 

San  Jose 6,688 

Total. 90,720 

Remainder  of  District. 46,967 

District  total 137,687 

Yearly  increase  of  population  estimated  from  comparative  statistics  of  births, 
deaths,  immigration  and  emigration: 

1910..... 28,091 

1911 - 30,310 

1912 11,797 

1913... 24,050 

1914 24,988 

1915 12,904 

1916 9,589 

1917 20,359 

1918. 8,308 

1919.. 20,590 

IMMIGRATION 

The  nationalities  that  immigrate  to  Venezuela,  in  order  of 
numbers,  at  the  present  time  are  Americans,  Germans,  Italians, 
Spaniards,  Syrians,  Hollanders,  with  few  French  and  English. 
Of  these,  the  Spaniards,  Italians  and  Syrians  alone,  with  a  few 
odd  exceptions,  become  citizens.  Before  the  war,  Germany 
furnished  the  preponderant  immigrant  element  but  to-day  the 
Germans  are  coming  in  fewer  numbers,  and  Americans  are 
increasing  proportionately. 

The  reasons  for  the  American  increase  are  mainly  the  estab- 
lishment of  three  branches  of  the  Royal  Bank  of  Canada  in 
Venezuela  in  1916;  the  National  City  Bank  of  New  York  with 
two  branches,  one  in  Caracas  the  other  in  Maracaibo,  and  the 
Mercantile  Bank  of  America  with  branches  in  the  same  two 
cities.  As  mentioned  above,  the  petroleum  activities  in  San 
Lorenzo  in  the  Maracaibo  district,  the  mines  and  coffee  ventures, 
also  brought  many  Americans. 

The  lack  of  immigration  in  the  past  has  been  due  mainly  to 


40  School  of  Foreign  Service 

sanitary  conditions,  and  the  internal  troubles  of  the  country. 
The  foreigner,  if  unmolested  long  enough  to  build  up  a  profitable 
business,  faced  the  danger  of  having  it  swept  away,  and  his  life 
endangered  during  one  of  the  frequent  revolutionary  outbreaks 
prior  to  the  present  regime.  However,  great  efforts  are  being 
expended  to  promote  immigration  as  vitally  necessary  for  the 
future  successful  upbuilding  of  the  country,  for  Venezuela  relies 
for  her  increase  in  population  upon  this  source  and  consequently 
several  methods  have  been  pursued  to  attain  this  end.  A 
glance  at  the  laws  of  immigration  formulated  January  7,  1893, 
will  show  the  favorable  inducements  offered  foreigners. 

The  Decree  of  1893  created  a  Board  of  Immigration  to  pro- 
mote colonization.  The  Board  is  known  as  the  Central 
Board  of  Immigration  and  established  subordinate  boards 
throughout  the  country.  These  societies,  state  societies,  as 
well  as  private  companies,  were  authorized  to  make  the  follow- 
ing favorable  concessions  to  induce  foreigners  to  come  and 
colonize  unused  lands. 

1.  Payment  of  the  immigrant's  passage  by  land  and  sea,  from  the  place  of 
embarkation  to  any  of  the  main  immigrant  depots.     The  National  Government 
may  also  pay  the  passage  of  the  immigrant  from  the  place  of  residence  to  the 
place  of  embarkation. 

2.  Payment  of  landing  expenses  and  board  and  lodging  for  thirty  days  after 
arrival. 

3.  Admission  free  of  duty  of  their  wearing  apparel,  domestic  utensils,  and 
instruments  of  trade. 

4.  Exemption  of  any  payments  for  necessary  passports. 

SPECIAL    PROVISIONS 

All  rights  accorded  by  law  to  aliens  are  guaranteed,  and  if 
naturalized  they  are  exempt  from  military  duties,  except  only  in 
case  of  foreign  wars. 

Special  provisions  were  also  made  in  behalf  of  individuals  and 
companies  organizing  colonies  for  settlement  in  Venezuela. 

The  manner  of  making  contracts  with  immigrants  is  carefully 
specified  in  the  following  manner: 

(a)  Those  who  purchase  lands  during  the  first  two  years  of  their  settlement, 
shall  not  be  bound  to  pay  the  price  thereof  until  after  the  expiration  of  four 
years,  counted  from  the  day  actual  possession  is  taken.     They  can  not  dispose 
of  the  land,  however,  during  this  period. 

(b]  The  title  is  not  to  be  determined  until  the  stipulated  price  is  paid  and  the 
required  cultivation  and  residence  proved. 


Venezuela  Report 


41 


Special  provisions  and  concessions  were  also  made  for  the 
colonization  of  public  lands  by  private  individuals  and  com- 
panies. 

There  is  an  annual  appropriation  in  the  National  Budget  to 
promote  this  project.  At  the  time  of  this  writing,  Mr.  Simon 
Barcelo  is  in  Europe,  traveling  through  the  different  countries 
inducing  immigrants  to  come,  and  acting  as  a  forwarding  agent. 
The  result  of  his  endeavors  is  being  manifested  in  the  increased 
number  of  immigrants  arriving  within  recent  months. 

Venezuela's  immigration  is  bound  to  increase  in  the  future,  for 
advertisement  is  bringing  results.  The  subjoined  statistics  will 
show  that  this  is  not  the  only  problem  confronting  the  Govern- 
ment, for  the  balance  of  immigration  and  emigration  is  only 
slightly  in  favor  of  the  former,  as  many  Venezuelans  leave  the 
country  yearly  for  the  West  Indies,  the  United  States  and  Europe. 
Whereas  before  the  war,  the  majority  of  the  youths  were  edu- 
cated in  Europe,  and  travelers  naturally  sought  Europe, 
difficulty  of  communication  and  transportation  during  the  war 
turned  the  stream  toward  the  United  States,  and  the  present 
popularity  of  Americans  in  Venezuela  bids  fair  to  perpetuate 
this  condition  of  affairs. 


Year 
1910 
1911 
1912 
1913 
1914 
1915 
1916 
1917 
1918 
1919 


Immigration  Emigration 

8,273  7,233 

9,204  7,219 

9,615  7,981 

11,617  10,708 

10,610  9,742 

9,818  8,770 

8,596  7,639 

7,857  7,182 

6,153  5,841 

12,433  12,897 

PUBLIC    EDUCATION 


Education  in  Venezuela  is  free,  and  in  the  six  primary  grades 
is  compulsory,  the  schools  from  the  ages  of  7  to  14  years  being 
maintained  by  the  National  Government,  State,  or  Munici- 
pality, the  Department  of  Education  being  under  the  direct 
supervision  of  the  Minister  of  Public  Instruction,  with  subordi- 
nate officials  forming  a  board.  In  1908  Mr.  Guillermo  Todd,  a 
distinguished  Venezuelan  educator,  was  sent  to  the  United 
States,  where  he  spent  two  years  in  the  larger  cities  inspecting 


42  School  of  Foreign  Service 

the  school  system,  the  normal  schools  and  universities.  On  his 
return  he  was  appointed  superintendent  of  schools,  and  reorgan- 
ized the  system,  introducing  many  American  ideas  and  methods 
which  largely  prevail  to-day. 

The  maintenance  of  the  educational  system  depends  upon  the 
receipts  from  stamps,  from  post-cards  and  letters,  from  fines 
collected  from  violators  of  the  instruction  laws;  from  taxes  upon 
inheritances,  imposts  upon  tobacco  leaves  and  manufactures, 
and  from  the  proceeds  of  the  revenue  stamps  placed  upon  boxes 
of  cigars. 

During  the  school  year  of  1919  there  were  founded  two 
primary  schools  with  three  teachers  each,  two  with  two  teachers 
and  nine  schools  with  one  teacher.  Two  schools  were  suspended 
and  eleven  changed  into  co-educational  with  one  teacher,  while 
thirteen  schools  changed  their  location.  Heretofore  education 
has  followed  the  population  only.  Outside  the  cities,  towns  and 
large  cities  near  the  coast  there  were  scant  educational  facilities, 
and  the  rural  population  was  to  a  large  extent  uninstructed, 
there  being  no  schools  nor  teachers.  During  1917  a  movement 
was  inaugurated  to  establish  rural  schools  in  all  industrial  dis- 
tricts, and  migratory  schools  of  this  kind  are  now  in  operation 
in  Frujillo,  in  Mario  El  Cantado  and  Caracas,  the  states  and 
municipalities  have  taken  the  matter  in  hand.  On  September  19, 
1919,  a  decree  was  passed  by  the  National  Government  to  offer 
a  bonus  in  the  form  of  wages,  of  from  100  to  200  bolivares 
($20.00  to  $40.00)  to  competent  persons  possessing  a  certificate 
of  primary  elemental  instruction,  who  would  enroll  and  teach 
children  below  fourteen  years  of  age  the  rudiments  of  education 
in  localities  of  small  population  where  there  were  no  public 
schools  nor  teachers.  The  bonus  to  be  received  varied  accord- 
ing to  the  number  of  pupils  enrolled;  many  small  classes  are  now 
in  operation  throughout  the  rural  districts. 

The  Obligatory  Instruction  Law  compelling  children  from  7 
to  14  years  of  age  to  attend  class  has  been  rigidly  enforced  by 
Government  decree  during  1919;  a  list  of  offending  parents  is 
compiled  and  they  are  visited  by  educational  officers,  and  fined 
if  found  guilty  of  not  sending  their  children  to  school.  By  an 
order  of  June  20,  1919,  English  is  to  be  henceforth  taught  in  all 
primary  schools,  in  view  of  its  present  importance  as  a  commer- 
cial language.  On  September  1, 1919,  appropriation  being  made,, 


Venezuela  Report 


43 


two  new  Manual  Training  Schools  were  founded,  one  at  Merida, 
the  other  at  San  Cristobal.  Physical  training  is  now  considered 
an  important  part  of  the  training,  and  at  least  a  half-hour  a  day 
is  spent  in  calisthenics  and  gymnastic  training.  In  1918  the 
Boy  Scouts  movement  was  proposed,  and  introduced  into  the 
schools  of  Maracaibo,  where  under  the  supervision  of  Mr.  W. 
Douglas  it  has  been  intertwined  with  the  courses  of  the  public 
educational  institutions.  This  movement  is  now  receiving 
national  prominence,  and  gained  favorable  commendation  in 
the  Memoria  de  Instrucci6n  Publica  (1918). 

According  to  the  latest  data,  there  are  approximately  1,500 
primary  schools  in  Venezuela  with  50,000  pupils  enrolled,  but 
the  system  is  laboring  under  the  difficulty  of  a  lack  of  teachers, 
due  to  inadequate  compensation.  The  children  attend  school 
six  days  a  week,  but  on  Saturday  have  class  in  the  morning 
only.  The  curriculum  consists  of  a  daily  lecture  or  assembly, 
elements  of  the  Spanish  language,  arithmetic,  the  legal  system 
of  weights  and  measures,  rudiments  of  etiquette  and  hygiene, 
moral  and  civic  instruction,  gymnastic  exercises  or  national 
songs,  and  elements  of  manual  training.  The  afternoon 
classes  embrace  writing,  geography,  history,  topics  of  the  day 
and  gymnastic  exercises. 

The  Secondary  Education  of  Venezuela  is  not  as  generally 
widespread,  in  proportion,  as  primary  education.  There  are 
102  schools  of  this  class  corresponding  to  high  schools  in  the 
United  States;  58  are  for  boys,  38  for  girls,  and  4  are  co-edu- 
cational. Some  are  grouped  into  Federal  Colleges  and  Normal 
Schools  annexed  to  Federal  Schools  in  Caracas  and  Valencia. 

Caracas  is  nominally  the  center  of  education  in  Venezuela. 
Here  are  found  two  normal  schools,  one  for  men  and  one  for 
women,  and  two  national  schools  of  arts  and  trades,  one  for  each 
sex.  In  1917  Schools  of  Commerce  were  instituted  at  Caracas, 
Maracaibo,  Puerto  Cabello,  Curupano  and  Ciudad  Bolivar. 
These  are  similar  to  our  own  commercial  schools,  teaching  lan- 
guages, bookkeeping,  stenography,  accounting  and  the  like. 
Besides,  there  are  found  throughout  the  country  thirty-four 
schools  of  higher  instruction,  and  twenty-one  subsidized  by  the 
Government. 

One  institution,  founded  June  30,  1919,  may  be  interesting  to 
note,  viz,  the  National  Telegraph  School  of  Caracas  in  which  the 


School  of  Foreign  Service 


first  pupils  were  enrolled  from  July  1  to  7,  1919.     The  school  is 
situated  in  the  Federal  Telephone  and  Telegraph  Building. 
The  candidate  must  have  the  following  qualifications: 

1.  Be  a  Venezuelan. 

2.  Over  15  years  of  age  and  under  25. 

3.  Have  had  elementary  primary  instructions  and  the  certificate  issued  for 
the  same. 

4.  Be  of  good  character. 

5.  Have  no  contagious  diseases,  and  no  physical  defects. 

6.  In  case  he  is  a  minor  he  must  have  the  permission  of  his  legal  guardian. 

There  are  six  National  Universities,  located  in  the  following 
cities: 

1.  Central  University  of  Caracas. 

2.  The  University  of  the  Andes  at  Merida. 

3.  The  University  of  Valencia  in  the  State  of  Carabobo. 

4.  The  University  of  Maracaibo  in  the  State  of  Julia. 

5.  The  University  at  Ciudad  Bolivar  in  the  State  of  Bolivar. 

6.  The  University  of  Barquisimeto  in  the  State  of  Lara. 

The  following  courses  are  pursued  in  the  Universities:  Medi- 
cine, Law,  Political  Science,  Philosophy  and  Letters,  Dentistry 
and  Pharmacy. 

The  length  of  these  courses  is  six  years  with  the  exception  of 
pharmacy,  which  is  a  four-year  course. 

Among  the  professional  schools  the  following  are  of  greater 
importance: 

1.  School  of  Engineering  at  Caracas. 

2.  School  of  Naval  Construction  at  Puerto  Cabello. 

3.  School  of  Political  Science  at  San  Cristobal. 

4.  School  of  Medicine  in  Caracas  (founded  December,  1915). 
A  free  dispensary  is  attached,  subsidized  by  public  funds  under 
the  direction  of  Civil  Hospitals. 

5.  School  of  Dentistry,  Caracas  (1916). 

6.  School  of  Sciences  (Physical,  Natural  and  Mathematical) 
Caracas  (December,  1915). 

7.  School  of  Chemical  Research. 

Of  the  Academies  the  more  important  are: 

1.  Those  of  natural  science,  music,  oratory  and  modern 
languages  found  in  the  larger  cities. 


Venezuela  Report 


45 


2.  The  Academy  of  Language  in  Caracas  devoted  to  the 
national  language  and  literature. 

3.  The  Academy  of  History  in  Caracas  devoted  to  national 
history. 

4.  One   seminary  at   Caracas, — the   Catholic   Seminary   for 
Theology  and  Canonical  Jurisprudence. 

Under  "miscellaneous"  we  may  consider  the  following: 
The  National  Library  of  Caracas  containing  50,000  volumes; 
a  national  museum  containing  a  valuable  historical  collection; 
the  Cajigal  Observatory  devoted  to  Astronomical  and  Meteoro- 
logical work;  the  libraries  of  Valencia  and  Maracaibo,  and  the 
Pasteur  Institute  in  Caracas. 

Among  the  educational  achievements  of  the  past  few  years, 
the  following  are  worthy  of  mention: 

1 .  Departments  for  engineering  work. 

2.  Departments  for  the  administration  of  budget. 

3.  Improvements    in    laboratories    in    physics,    mineralogy, 
geology,  botany  and  zoology. 

4.  Enlargement   of  the   libraries   and   improvement   of  the 
school  of  medicine. 

5.  The  schools  of  arts  and  crafts  for  men  has  541  men  enrolled. 
The  clever  map  making  of  the  students  should  be  especially 
noted. 

6.  The  meteorological  stations  in  Merida,   Maracaibo  and 
Calabozo. 

The  appropriation  for  education  for  the  fiscal  year  Julyjl, 
1920  to  June  30,  1921,  recently  passed  by  the  Venezuelan  Con- 
gress, contains  the  following  items: 

Bolivares 

1.  Ministry _ 120,580 

2.  National  Council  of  Instruction 119,016 

3.  Primary  Education 2,465,542 

4.  Secondary  Education 259,240 

5.  Normal  Education 203,940 

6.  Board  of  Inspection 135,600 

7.  Superior  Instruction  and  Institutes  of  Uni- 

versity Extension 373,781 

8.  Special  Instruction 326,672 

9.  Celebrations  and  Entertainments 143,940 

10.  General  Costs 180,000 

Total....  -.Bs.      4,328,181 


46  School  of  Foreign  Service 

It  may  be  said  in  conclusion  that  Venezuela  fully  recognizes 
the  importance  of  sound  educational  institutions  and  every 
effort  is  being  expended  to  bring  about  the  desired  results 
through  legislation.  The  work  is  slowly  materializing  but 
assuredly  progressing.  By  far  the  greatest  problem  is  the  lack 
of  professors.  Educational  progress  has  of  necessity  been 
retarded  in  the  past  but  as  the  era  of  prosperity  of  the  country 
has  been  gradually,  but  surely,  dawning,  this  important  branch 
has  not  been  neglected,  and  a  brighter  future  is  before  the 
Venezuelan  youths  which  will  preclude  the  necessity  of  going 
abroad,  as  they  have  done  in  the  past,  to  complete  their  training. 

The  country  has  need  of  highly  educated  men;  it  is  determined 
to  provide  the  institutions  necessary  to  satisfy  these  needs. 

Thomas  F.  Morris. 


PORTS  OF  VENEZUELA 

With   an   increasing   commerce   and   steady   betterment   o 
domestic  economic  conditions,  the  ports  of  Venezuela  are  rapidl 
assuming  a  position  that  for  continued  development  and  genera 
good  condition  has  never  been  equalled  in  the  history  of  the  coun 
try.    All  countries  recognize  the  vital  economic  value  of  ports  an 
with  few  exceptions  can  gauge  their  own  prosperity  by  th 
nature  and  number  of  their  harbors.     Few  countries  are  mo 
dependent  upon  their  ports  than  Venezuela.     Because  of  poor 
inland    communication    with    neighboring    countries,    and    an 
inability  to  maintain  itself,  largely  due  to  lack  of  manufactures 
and  due  also  to  a  marked  dependence  upon  the  outside  world  fo 
the  marketing  of  its  products,  this  nation  is  to  a  high  degr 
reliant  upon  its  foreign  commerce  and  hence,  in  turn,  upon  i 
ports. 

Fortunately,  Venezuela  has  a  long  coast  line  of  3,020  kilo- 
meters, indented  with  32  harbors,  50  small  bays  and  many 
coves.  The  most  important  ports  in  the  approximate  order  o 
importance  are:  La  Guaira,  Maracaibo,  Puerto  Cabello,  Ciudad 
Bolivar,  Carupano,  Puerto  Sucre,  La  Vela,  Cristobal  Colon, 
Cafio  Colorado,  Guanta,  Pampatar,  Imataca  and  San  Antonio 


Venezuela  Report 


47 


del  Tachira.  At  the  present  time  many  of  the  best  natural 
ports  and  the  most  favorably  situated  are  still  undeveloped  or 
occupy  a  secondary  position.  This  is  partially  due  to  the  lack 
of  development  of  their  naturally  rich  and  fertile  hinterlands, 
difficulties  of  transportation  and  unsympathetic  government 
legislation.  However,  remedies  are  now  being  applied  and  it 
can  safely  be  predicted  that  certain  of  the  minor  ports  will  soon 
outstrip  the  older  and  better  developed  ones.  A  brief  survey 
will  serve  to  show  the  general  nature  and  economic  status  of 
some  of  the  better  known  ports. 

Chief  in  importance  is  LA  GUAIRA  which,  connected  with  Cara- 
cas by  24  miles  of  railroad,  stands  as  the  commercial  center  of 
Venezuela  and  will  be  treated  in  more  detail  later. 

MARACAIBO 

Situated  on  a  fresh  water  lake  of  approximately  the  same  size  as  Lake  Erie, 
the  Port  of  Maracaibo  drains  a  large  hinterland.  Coffee  and  petroleum  are  its 
two  important  exports.  Besides  that  of  Venezuela,  much  coffee  of  Colombian 
origin  is  exported  from  the  port.  It  may  also  be  noted  that  there  is  an  ever  in- 
creasing exploitation  of  petroleum  and  a  corresponding  demand  for  harbor  facili- 
ties. Physically  the  port  enjoys  a  great  advantage  in  being  located  on  a  large 
lake  fed  by  numberless  rivers. 

The  lake  itself  could  accommodate  vessels  of  thirty-foot  draft,  while  three  of 
the  largest  rivers,  the  Catatumbo,  Lulia  and  Escalante  can  be  travelled  by  river 
steamers  of  fair  size.  The  two  former  streams  are  navigable  as  far  as  Villa- 
mizar  in  Colombia,  and  afford  a  fine  transportation  route  for  the  coffee  and 
other  products  of  Santander.  However,  the  port  suffers  a  great  disadvantage, 
as  the  main  channel  leading  into  the  port  is  obstructed  by  a  bar.  The  depth  of 
water  on  this  bar  ranges  from  seven  feet  at  low  tide  to  twelve  feet  at  high  tide. 
The  project  of  dredging  the  channel  seems  to  be  entirely  feasible  and  if  accom- 
plished would  add  greatly  to  the  general  prosperity  of  Venezuela. 

PUERTO  CABELLO 

Deriving  its  name  from  the  fact  that  its  waters  were  considered  so  placid  that 
vessel  might  anchor  within  its  protection  sustained  by  a  single  strand  of  hair, 
'uerto  Cabello  remains  the  most  sheltered  port  of  Venezuela.     Equipped  with 
floating  dock  282  feet  Jong,  80  feet  wide  and  21  feet  high,  it  is  able  to  take  care 
)f  vessels  up  to  2,000  tons  and  has  proved  especially  serviceable  for  the  small 
jteamers  that  serve  the  coast  cities  of  Venezuela  and  Colombia.     Coastwise 
vessels  of  light  tonnage  are  constructed  here  and  repairs  of  an  extensive  nature 
may  be  made.     Many  improvements  to  the  ship  building  plant  and  repair  docks 
are  under  way  and  the  new  floating  dry  dock  when  completed  will  permit  the 
docking  of  vessels  up  to  4,000  tons,  which  means  that  it  will  be  capable  of  ac- 
commodating practically  all  vessels  that  touch  Venezuelan  ports.     The  average 
depth  of  the  harbor  is  28  feet.     Cattle  are  an  important  export,  large  consign- 


48  School  of  Foreign  Service 

ments  being  made  from  the  surrounding  country.  A  frozen  meat  establish- 
ment controlled  by  English  interests  is  of  considerable  value  to  the  port,  the 
meat  being  shipped  to  England  in  special  ships.  Puerto  Cabello  is  20  miles 
distant  from  Valencia  and  has  railroad  connections  with  both  it  and  Caracas. 
Other  exports  besides  cattle  are  coffee,  cacao,  dyewoods,  hides,  skins,  and  copper 
ores. 

CIUDAD  BOLlVAR 

A  river  port  situated  on  the  right  bank  of  the  Orinoco  240  miles  above  its 
mouth,  Ciudad  Bolivar  is  the  commercial  center  of  the  Orinoco  basin.  A  bar 
which  blocks  the  river  channel  prevents  ships  of  more  than  twelve  feet  draft 
from  navigating  the  harbor.  Due  to  the  large  quantity  of  sand  deposited  by 
the  river  and  its  tributaries,  dredging  is  practically  an  impossibility.  Vessels 
of  less  than  twelve  feet  draft  can  go  up  the  Orinoco  as  far  as  San  Fernando  de 
Apure.  The  principal  exports  are  cattle,  horses,  mules,  tobacco,  cacao,  rubber 
tonka  beans,  bitters,  hides,  timber  and  other  forest  products.  The  port  has 
connections  with  government  land  lines,  regular  communication  with  the  lower 
and  upper  Orinoco  and  steamship  lines  to  New  York  and  the  Antilles.  The 
government  imposes  a  surtax  of  30%  on  imports  from  the  West  Indies  which 
greatly  diminishes  the  commerce  of  the  port. 

MINOR  PORTS 

Carupano  is  well  located  for  commerce,  being  on  the  Caribbean  coast  at  the 
opening  of  two  valleys.  It  is  the  commercial  center  of  the  rich  and  populous 
hinterland  of  the  valleys  of  Tunapui  and  Pilar  and  the  valuable  forests  o 
Coiguar.  The  principal  exports  are  coffee,  cacao,  cotton  and  forest  products 
Although  possessing  fair  wharves,  the  harbor  is  very  open  and  cargo  must  be 
moved  in  lighters  and  launches  to  the  piers.  Traffic  is  almost  entirely  of  a  coast- 
wise nature  with  La  Guaira. 

Quanta  is  one  of  the  eastern  ports  of  the  country  and  has  an  excellent  natura 
land-locked  harbor.  Its  wharf  can  accommodate  trans-Atlantic  steamers,  al- 
though commerce  from  abroad  is  light.  The  wooden  pier,  formerly  in  very  bac 
condition,  is  being  replaced  by  one  of  concrete.  Guanta  is  connected  by  twenty- 
four  miles  of  railroad  with  the  coal  mines  of  Naricuse  and  furnishes  fuel  for  coast- 
wise vessels.  Large  numbers  of  cattle  are  raised  in  the  surrounding  country  anc 
upon  the  completion  of  improvements  the  harbor  should  have  a  very  brigh 
future.  By  a  government  decree  of  1917  the  port  was  closed  to  import  com- 
merce and  depends  almost  entirely  upon  exports  for  its  functioning. 

Puerto  Sucre  is  situated  west  of  the  city  of  Cumana  at  a  distance  of  less 
than  a  mile.  It  is  equipped  with  a  wooden  pier  constructed  by  the  Cumana 
and  Carupano  Pier  Company.  The  depth  of  water  varies  greatly  and  the  load- 
ing and  unloading  of  vessels  is  accomplished  in  lighters  belonging  to  the  company 
The  commerce  of  the  port  is  small,  most  being  undertaken  with  'the  neighboring 
ports  of  Venezuela. 

La  Vela  borders  on  a  low  swampy  region  and  is  connected  by  railroad  with 
Coro.  Except  for  a  small  coastwise  trade  with  Puerto  Cabello,  the  port  enjoys 
little  commercial  activity.  Coal  mines  are  near  by  and  with  their  future  exploi- 
tation an  increase  in  commerce  may  be  expected.  The  waters  of  the  harbor  are 
unusually  rough  and  lighters  must  be  used  for  discharging  cargo. 


RANCHO  GRANDE 
THE  ROAD  THROUGH  THE  MOUNTAINS 


PORT    OF    OCUMARE     DE     LA     COSTA    ON    THE     CARIBBEAN 


Facing  p.  49 


Venezuela  Report  49 

While  there  are  many  other  ports  besides  those  mentioned 
above,  their  commerce  is  so  light  and  in  such  a  poor  state  of 
development  that  more  consideration  need  not  be  given  them 
here.  For  the  most  part,  their  commerce  is  entirely  coastwise 
and  is  carried  on  principally  in  small  sailing  vessels.  The  funda- 
mental obstacle  to  their  future  progress  and  indeed  to  the 
progress  of  the  entire  nation  seems  to  be  lack  of  population — a 
difficulty  which  the  government  is  striving  hard  to  overcome  by 
furnishing  immigrants  with  free  transportation,  and  paying 
passport  expenses. 

SPECIAL    PORT   ACTIVITIES 

At  present  there  are  no  free  ports  in  Venezuela  and  despite 
many  rumors  and  much  discussion  the  establishment  of  a  free 
port,  at  least  for  some  time,  seems  improbable.  However,  the 
Minister  of  Finance  has  recommended  the  installation  of 
bonded  warehouses  at  some  port  centrally  located  on  the 
coast  mainly  for  the  better  accommodation  of  coastwise 
trade.  Cargoes  could  be  placed  for  a  long  period  of  time  in  the 
proposed  warehouses  and  the  charges  collected  with  the  move- 
ment of  goods.  The  advantage  of  such  a  plan  would  be  princi- 
pally the  ability  of  profiting  from  market  conditions  and  the 
fluctuation  of  prices.  The  execution  of  this  plan  depends 
solely  upon  the  legislation  of  the  government  and  will  be  officially 
considered  in  the  near  future. 

Of  far  greater  importance  is  the  proposed  project  of  trans- 
forming Puerto  Ocumare  de  la  Costa  from  a  small  harbor  with 
very  little  commerce  into  a  leading  port  capable  of  becoming  a 
formidable  rival  of  La  Guaira.  For  the  accomplishment  of 
this  the  former  port  would  have  to  be  connected  by  railroad  with 
Maracay,  a  distance  of  43  miles,  and  goods  shipped  to  the  terri- 
tory which  La  Guaira  now  supplies.  The  railroad  would  be 
very  difficult  to  construct  as  it  would  have  to  traverse  a  moun- 
tainous country  and  would  take  years  to  complete.  Engineers 
are  considering  the  feasibility  of  the  undertaking.  The  reason 
for  the  new  project  is  generally  believed  to  be  the  raise  in  rates 
of  the  La  Guaira  Harbor  Corporation  brought  about  by  chang- 
ing from  weight  to  volume  measurement  of  cargo.  The  com- 
pany justifies  its  charge  advance  on  the  grounds  that  it  was 
necessitated  by  the  increase  in  wages  due  to  strikes.  However, 


SO  School  of  Foreign  Service 

the  government  insists  that  the  raise  is  entirely  out  of  proportion 
to  the  increase  in  salary  paid.  The  new  rates  impose  an  increase 
in  charge  of  37>^%  on  coffee,  87  ^%  on  cacao  and  300%  on 
hides.  Proportionate  increases  are  made  on  many  other  articles. 
It  is  needless  to  say  that  if  the  plan  is  carried  out  it  will 
directly  or  indirectly  affect  a  large  portion  of  the  country.  And 
whether  the  economic  advantages,  such  as  new  harbor  develop- 
ment, the  opening  up  of  new  lands,  and  the  increased  mileage  of 
railroads  will  justify  the  disadvantage  of  large  expenditures  and 
risks  involved  is  a  question  that  time  alone  can  answer. 

PORT   OF   LA   GUAIRA 

Formerly  considered  one  of  the  most  dangerous  harbors  on 
the  Caribbean  coast,  La  Guaira  is  to-day  Venezuela's  leading 
port  and  the  recipient  of  a  large  volume  of  commerce  both  from 
Venezuela  and  abroad.  Its  prosperity  may  be  assigned  to 
several  causes.  By  reason  of  its  proximity  to  Caracas,  the  capi- 
tal and  chief  city  of  the  republic,  the  port  enjoys  a  great  com- 
mercial advantage,  as  Caracas  is  a  center  of  transportation 
activities.  Again,  the  harbor  besides  being  favorably  located 
can  accommodate  vessels  of  large  draft  and  possesses  harbor 
and  warehouse  facilities  of  an  extensive  nature.  Government 
legislation  has  also  accomplished  much  to  assure  its  preeminence 
as  certain  laws  now  in  force  operate  to  divert  much  commerce 
to  La  Guaira  that  would  normally  go  to  other  Venezuelan 
ports. 

The  port  works  and  equipment  are  owned  by  the  La  Guaira 
Harbor  Corporation,  an  English  company  that  has  undertaken 
improvements  totalling  $5,000,000  and  that  have  changed  the 
harbor  from  a  natural  to  an  artificial  port.  Before  the  improve- 
ments, the  port  was  an  open  roadstead — unsheltered  and  very 
dangerous.  At  the  present  time  it  is  protected  by  a  stone  and 
concrete  sea  wall,  constructed  from  an  average  depth  of  29>£ 
feet  and  rising  19^  feet  above  water.  This  protection  is  ample 
and  ships  may  move  about  and  anchor  in  complete  safety. 
The  sheltered  area  of  the  harbor  is  75  acres  and  has  an  average 
depth  of  from  28  to  30  feet.  Entrance  is  made  between  the 
buoy  at  end  of  pier  No.  5  and  buoy  No.  4  placed  at  a  distance  of 
300  feet.  The  maximum  range  of  tide  is  approximately  3  feet. 
Vessels  of  23-foot  draft  can  safely  navigate  the  harbor. 


Venezuela  Report  51 

Landing  is  made  at  jetties  inside  the  breakwater  and  the  cargo 
is  loaded  on  cars  and  taken  to  warehouses.  The  jetties  are  three 
in  number  and  can  accommodate  three  large  or  four  small 
steamers.  These  jetties  are  all  equipped  with  railway  facilities. 
Bunkerage  is  not  available  and  vessels  must  coal  from  lighters 
or  cars  on  wharf.  The  port  can  supply  only  a  limited  amount 
of  coal,  mostly  Cardiff  brikettes.  Fuel  oil  can  not  be  obtained, 
but  is  available  in  large  quantities  at  Curasao,  60  miles  distant. 

The  population  of  the  port  is  estimated  at  26,000.  The 
climate  is  very  hot  with  an  average  temperature  of  84°.  The 
prevailing  winds  are  northeast  by  southwest. 

Though  but  8  miles  from  Caracas,  24  miles  of  winding  rail- 
road through  the  mountains  are  necessary  to  connect  the  port 
with  the  capital.  The  line  is  owned  by  an  English  company, 
has  a  gradient  of  4%  and  is  of  3-foot  gauge.  From  Caracas  the 
Great  Railroad  of  Venezuela  operates  a  road  to  the  city  of 
Valencia  which  in  turn  is  connected  by  a  third  line  to  Puerto 
Cabello. 

The  principal  exports  of  the  port  are  coffee,  cacao  and  hides 
which  are  sent  principally  to  the  United  States,  with  which 
commerce  is  greatly  increasing.  Much  cacao  of  the  better 
grade  is  exported  to  France. 

The  imports  are  textiles,  chemicals,  machinery,  hardware, 
paper  products,  drugs  and  medicines,  of  which  75%  come  from 
the  United  States.  Large  return  cargoes  are  difficult  to  get 
and  at  times  absolutely  unobtainable. 

The  following  statistics  may  serve  to  show  the  volume  of 
commerce  of  the  port: 

MOVEMENT  OF  CARGO  FROM  THE  PORT  OF  LA  GUAIRA 

1918  1919 

Metric  Tons    Metric  Tons  Increase  (M.  T.) 

Foreign  imports 25,384  38,843  13,459 

Foreign  exports 26,186  30,632  4,445 

Coastwise  trade 55,446  64,195  8,748 

Total  movement 107,017  133,671  26,654 

MOVEMENT  OF  PASSENGERS  FROM  LA  GUAIRA 
Year 

1915 8,216 

1916 8,707 

1917 9,976 

1918 9,897 

1919 15,974 


52  School  of  Foreign  Service 

MOVEMENT  OF  CARGO  FROM  PORT  OF  LA  GUAIRA  BY  YEAR  SINCE  1905 

Year  Year 

1905 92,489  1913 116,116 

1906 89,299  1914 110,498 

1907 93,548  1915 104,583 

1908 63,012  1916 113,351 

1909 74,414  1917.. 123,963 

1910 81,525  1918 107,017 

1911 91,996  1919...... 133,671 

1912 105,844 

PILOTAGE   AND  TOWAGE 

Pilotage  is  not  compulsory  and  is  little  used  as  entrance  to 
the  harbor  is  easily  made.  When  signalled  for,  the  pilot  boards 
the  vessel  about  2  miles  off  shore  and  proceeds  to  the  port. 
Towage  is  very  seldom  used,  the  only  tug  available  being  owned 
by  the  harbor  corporation.  The  charge  for  towage  is  $50  for  a 
distance  of  from  4  to  6  miles  off  shore. 

Mooring  and  shifts  within  the  harbor  are  made  from  swinging 
buoys  and  with  the  vessel's  own  equipment  of  capstan  and 
winches.  A  mooring  charge  of  $0.0286  per  net  ton  register  is 
collected  by  the  harbor  corporation  both  on  steamers  and  sailing 
vessels. 

LIGHTERAGE   AND   CARTAGE 

The  port  is  equipped  with  six  lighters  of  30  ton  capacity,  all 
of  which  are  owned  by  the  corporation.  They  are  principally 
used  when  the  mole  is  overcrowded  and  for  the  handling  of 
large  packages.  Vessels  carrying  explosives  or  other  dangerous 
cargo  must  anchor  just  inside  the  breakwater  and  discharge 
their  goods  into  lighters. 

Cartage  for  local  delivery  is  accomplished  by  means  of  small 
two-wheeled  carts;  most  of  the  cargo,  however,  is  handled  by 
the  railroad  with  which  the  jetties  are  all  connected. 

STEVEDORING 

Harbor  conditions,  on  the  whole,  are  satisfactory.  When 
experienced,  the  help  is  skillful  and  efficient  but  unfortunately 
is  hard  to  obtain.  The  employees  have  no  union  and  are  for 
the  most  part  mulattoes.  The  regular  hours  of  work  are  from 


Venezuela  Report  53 

7  A.  M.  to  4:30  P.  M.,  while  overtime  (daylight)  is  from  4:30  P.  M. 
to  6:30  P.  M. 

The  cost  of  discharging  cargo  is  60c.  per  hour  during  the 
regular  hours.  For  overtime  in  daylight  the  rate  is  increased 
40c.  and  in  night  time  60c.  Talley  clerks  receive  $3.00  per  day 
with  40%  increase  for  overtime  in  daylight  and  double  time 
after  9:00  P.M. 

The  time  rate  for  handling  cargo  is  about  20  metric  tons  per 
hour  by  gang  of  20  men.  The  discharging  rate  varies  according 
to  the  nature  of  the  cargo  as  it  can  not  be  placed  on  the  wharf 
faster  than  the  employees  of  the  Customs  House'can  check  it. 

PORT   CHARGES 

Of  first  importance  are  the  charges  collected  by  the  govern- 
ment, which  include  the  following:  An  export  tax  on  coffee, 
cacao,  etc.,  which  is  paid  by  the  exporter,  the  vessel  not  being 
charged;  a  tax  by  the  captain  of  the  port  to  the  value  of  $2.41; 
interpreter's  service,  which,  however,  is  not  compulsory,  $6.18; 
port  doctor  fee  $9.65  for  steamers  and  $4.83  for  sailing  vessels; 
pilotage,  if  taken,  for  steamers  $16.21,  sailing  vessels  $11.58; 
government  stamps,  $1.93. 

Vessels  are  boarded  by  the  port  doctor  and  a  bill  of  health  is 
required  from  the  Venezuelan  Consul  at  the  last  port,  also  lists 
of  passengers  and  crew. 

The  port  possesses  an  under-equipped  hospital  and  a  fee  of 
$3.86  is  collected  by  the  hospital  association  from  each  large 
vessel  entering  or  leaving  the  harbor.  If  proceeding  to  another 
domestic  port  a  bill  of  health  is  required  and  a  charge  of  $2.35 
is  made  by  the  government. 

The  municipality  collects  a  water  charge  of  $46.32  whether 
water  is  taken  on  or  not.  If  additional  water  is  desired,  a 
further  charge  of  77c.  a  ton  is  made.  Other  charges  are  made 
by  the  Harbor  Corporation  including  $0.0386  per  net  ton  regis- 
ter for  mooring  and  a  similar  sum  for  each  metric  ton  loaded 
or  discharged  during  regular  hours. 

WHARVES   AND   WAREHOUSES 

The  breakwater  pier  is  equipped  with  3  jetties  of  concrete 
construction,  with  a  vessel  clearance  of  2,000  feet.  The  length 
of  jetty  No.  1  is  70  meters,  while  that  of  No.  2  and  No.  3  com- 


54  School  of  Foreign  Service 

bined  is  215  meters.  Their  width  is  15  meters  and  the  depth 
of  water  at  low  tide  is  30  feet.  The  jetties  have  a  capacity  of 
6,000  tons  of  general  cargo. 

The  pier  is  equipped  with  ten  revolving  steam  cranes,  the 
largest  of  which  is  of  12  ton  capacity  with  boom  radius  of  60 
feet  at  an  angle  of  45°.  The  remaining  cranes  are  of  5  and  3  ton 
capacity  respectively. 

The  port  has  four  warehouses  with  a  total  floor  space  of  5,134 
square  meters.  All  are  in  charge  of  the  government  and  are  in 
good  condition.  Strict  regulations  are  in  force  and  the  Cus- 
tom House  processes  are  of  a  character  to  discourage  commerce. 

The  national  tariff  is  highly  protective,  the  government 
receiving  a  large  percentage  of  its  revenues  from  this  source. 
Few  goods  are  admitted  free  and  those  likely  to  compete  with 
home  industry  are  severely  taxed. 

•- 

DOCUMENTS 

Necessary  for  port  doctor: 

Bill  of  health. 

List  of  crew  (register). 

List  of  passengers. 
Necessary  for  customs  authorities: 

Ship's  register  (sometimes  demanded). 

Consular  dispatch  from  Venezuelan  Consul,  consisting 
of  one  sealed  package  with  general  manifest  of  cargo, 
consular  invoices,  bills  of  lading,  etc. 

Two  copies  of  crew  list. 

Two  copies  of  the  passenger  list. 

Two  copies  of  the  list  of  provisions  and  stores. 

Two  copies  of  the  "Sobordo"  in  hand. 

Two  copies  of  the  B/L  sealed  by  Venezuelan  Consul  in 

the  last  port. 
Necessary  for  agency: 

Vessels    bringing    cargo    from    United    States   ports: 

1  copy  of  manifest 

1  set  of  ship's  export  declarations. 

1  set  ship's  papers  (from  American  vessels). 

Paul  Babbitt. 


Venezuela  Report  55 


OCEAN,    CABLE    AND    RADIO    COMMUNICATION 
WITH  VENEZUELA 

Venezuela,  northernmost  of  the  South  American  republics, 
comprises  an  area  of  393,976  square  miles,  including  vast  mineral 
resources  and  land  well  suited  for  agricultural  pursuits  and 
cattle  raising.  Among  the  principal  agricultural  products  which 
Venezuela  raises  in  sufficient  quantity  for  export  to  other  parts 
of  the  world  are  coffee,  cocoa,  sugar,  tobacco  and  rubber.  Other 
exports  are  gold,  hides  and  skins.  Among  the  principal  imports 
we  find  cotton  goods,  wheat  flour,  and,  in  short,  all  manufac- 
tured articles  used  in  the  tropics  except  shoes,  laundry  soap, 
candles,  matches,  salt,  ready-made  clothing  and  similar  articles 
upon  which  tariff  rates  are  prohibitive.1 

It  is  within  my  province  here  to  discuss  communication 
facilities  between  Venezuela  and  other  countries,  both  in  regard 
to  steamship  facilities,  and  cable  and  wireless  communication, 
for  the  purpose  of  determining  whether  or  not  the  existing  lines 
of  communication  are  best  suited  to  promote  commerce  between 
Venezuela  and  the  countries  to  which  and  from  which  she 
exports  and  imports  products.  . 

The  first  point  to  be  considered  is  that  of  shipping  communi- 
cations, since  it  is  in  ships  that  foreign  commerce  must  be 
carried.  In  the  following  pages  we  shall  briefly  discuss  Vene- 
zuelan ports,  volume  of  shipping  entering  and  leaving  these 
ports  and  the  countries  and  lines  owning  and  operating  these 
ships. 

The  principal  Venezuelan  ports  in  order  of  their  importance 
are  La  Guaira,  Maracaibo,  Puerto  Cabello  and  Ciudad  Bolivar.2 

La  Guaira,  due  to  its  geographical  position  as  the  port 
nearest  the  United  States  and  Europe  (2,000  miles  from  New 
York  and  New  Orleans),  together  with  the  fact  that  it  is  near 
Caracas,  the  capital  and  commercial  centre  of  Venezuela,  is  the 
most  important  port  in  that  country.  It  is  therefore  a  port  of 
egress  and  entry  for  Caracas  and  central  Venezuela.  Besides 
being  the  capital  and  largest  city,  Caracas  is,  to  a  peculiar 

'United  States  Commerce  Reports  (No.  48-A),  1920. 
2Reports  of  Trade  Commissioner  Bell,  Commerce  Dept. 


56  School  of  Foreign  Service 

degree,  the  centre  of  the  commercial  and  industrial,  as  well  as 
the  political  life  of  Venezuela.  Practically  every  company 
engaged  in  any  sort  of  business  maintains  an  office  in  Caracas, 
which  accounts  in  part  for  the  importance  of  the  nearby  port 
of  La  Guaira. 

Due  to  the  importance  of  coffee  and  sugar  growing  in  the 
district  around  Maracaibo,  this  port  is  the  second  in  importance 
in  Venezuela.1  It  is  situated  at  the  entrance  of  a  great  lake 
which  opens  the  way  to  a  territory  rich  in  coffee  and  sugar 
plantations  as  well  as  in  coal  mines  and  petroleum  fields.  Its 
only  disadvantage  is  the  fact  that  a  shallow  channel  which  must 
be  dredged  continually  prohibits  the  entrance  of  vessels  of  large 
tonnage  at  many  periods  of  the  year. 

The  next  port  in  importance,  that  of  Puerto  Cabello^  is  the 
inlet  and  outlet  for  a  district  containing  three  of  Venezuela's 
largest  cities,  Valencia,  Barquisimeto  and  Coro.  This  region 
is  preeminently  agricultural  in  its  activities  and  its  prosperity 
is  largely  dependent  on  its  export  trade  in  coffee,  cacao,  hides, 
skins,  copper  ore  and  frozen  meat. 

Ciudad  Bolivar^  fourth  in  importance  of  the  ports  of  Vene- 
zuela, is  situated  on  the  Orinoco  River,  about  two  hundred  miles 
above  its  mouth.  In  every  respect  its  commerce  is  very  differ- 
ent from  that  of  the  rest  of  Venezuela,  depending  not  upon  the 
products  of  manufacturing  or  agriculture,  but  upon  wild  prod- 
ucts of  the  forests;  upon'gold  mined  and  washed  in  Venezuelan 
Guiana,  and  upon  hides  which  are  rafted  down  the  Orinoco  and 
its  tributaries  from  southern  Venezuela  and  eastern  Colombia. 

In  order  to  give  a  clear  idea  of  the  ships  and  tonnage  entering 
and  leaving  the  various  Venezuelan  ports,  as  well  as  their  nation- 
alities, I  have  compiled  statistics  from  the  official  figures  given 
by  the  Minister  of  Hacienda  for  the  year  1918,  the  last  year  for 
which  figures  could  be  obtained.  A  study  of  these  figures 
shows  the  relative  importance  of  the  ports  of  the  country  as 
well  as  the  volume  of  commerce  with  foreign  nations.3 


lConsular  reports  from  La  Guaira  and  Maracaibo. 
'Consular  reports  from  Puerto  Cabello  and  Ciudad  Bolivar. 
3United  States  of  Venezuela :  Ministerio  de  Hacienda;    "  Estadistica  Mercantil 
y  Maritima." 


Venezuela  Report 
SUMMARY 

Number  of  Ships  Entering  Each  Port,  January — June,  1918 


57 


PORTS 
La  Guaira 

SHIPS 
Steam    Sail 
52     18 

TONNAGE 

Steam          Sail 
102,762         962 
9,522       4,380 
107,041        1,563 
3,118              9 
17,145          184 
2,474          285 
1,797 

TOTAL 

Ships  Tonnage 
70      103,724 
51        13,902 
57      108,604 
15         3,127 
28        17,329 
38         2,759 
33         1,797 
49       14,557 
46         1,141 

Maracaibo 

12    39 

Puerto  Cabello.... 
Ciudad  Bolivar.... 
Canipano 

..     33     24 
...     14       1 
14     14 

Puerto  Sucre  
La  Vela  

Cristobal  Colon  .. 
Pampator 

..      5     33 
33 
..     13    36 
2    44 

13,250       1,307 
511          630 

Total 

145  242 

225,823     11,117 

These  Ports,  Janua\ 

TONNAGE 

Steam         Sail 
77,183     2,094 
303 

387     266,940 

ry—June,  1918. 

TOTAL 
Ships  Tonnage 
61          79,277 
6             303 
7         26,439 
6         14,771 
36         10,164 
44         90,950 
3         16,962 
11         13,505 
213         14,569 

Nationalities 
FLAGS 
American 

of  Ships  Entering 

SHIPS 
Steam  Sail 
..     51     10 

Colombian  
Spanish 

6 

7 

26,439 

French  
Dutch 

..       6  
..      3    33 
..    37      7 
..      3  .. 

14,771    
7,251     2,913 
90,678        272 
16,962   

English     

Italian 

Norwegian 

11 

13,505 

Venezuelan  

..    27  186 

9,034     5,535 

Total 

145  142 

255,823    11,117 

zuelan  Ports  June  — 

TONNAGE 
Steam        Sail 
112,498     4,835 
14,968      1,480 
111,369        915 
3,118            8 
1,381         186 
225 

387       266,940 

December,  1918. 

TOTAL 

Ships  Tonnage 
125        117,333 
47         16,448 
52       112,284 
15           3,126 
18           1,567 
15             225 
16             735 
46           8,868 
43              762 

Number  of  Ships  Entering  Vent 

PORTS                   SHIPS 
Steam    Sail 
La  Guaira                   72     53 

Maracaibo...  
Puerto  Cabello.... 
Ciudad  Bolivar.... 
Canipano  
Puerto  Sucre 

..     28     19 
..    27    25 
..     14       1 
..       6     12 
..     15 

La  Vela 

16 

735 
7,720     1,148 
762 

Cristobal  Colon.... 
Pampator 

..     12    34 
..     43 

Total.... 

..  159  218 

251,054   10,294 

377       261,348 

58 


School  of  Foreign  Service 


FLAGS 


SHIPS 
Steam    Sail 

American 68       1 

Spanish 13  

French 14       2 

Dutch 3     28 

English 27      4 

Italian 6  

Norwegian 4  

Venezuelan....  24  183 


TONNAGE 


Nationalities  of  Ships  Entering  Venezuelan  Ports,  June — December,  1918. 

TOTAL 

Ships  Tonnage 
69    77,433 
50,041 
6,071 
3,607 
73,400 
33,924 
6,184 
10,688 


Steam 

77,359 

50,041 

3,011 

1,914 

73,319 

33,924 

6,184 

5,302 


Sail 

74 

3,060 

1,693 

81 


5,386 


13 
16 

31 

31 

6 

4 

207 


Total 159  218 


251,054  10,294 


377       261,348 


Number  of  Ships  Sailing  From  Each  Port,  January — June,  1918. 

PORTS  SHIPS  TONNAGE 

Steam  Sail  Steam       Sail 

LaGuaira 49  53  79,593     3,936 

Maracaibo 69  121  29,560    11,987 

Puerto  Cabello. 33  108  86,306     5,275 

Tucacas 4  5  4,065        557 

Ciudad  Bolivar 14  1  3,512            9 

San  Felix 3  942   

Barrancas 9  1  3,494 

Carupano 17  29  17,304 

RioCarila 15  2  1,096 

Puerto  Sucre 2  45  118 

Guanta 13  9  5,515 

La  Vela....  91 


Cristobal  Colon 6  361 

Pampator 3  104 

Total 237  930 


10,200 
139 


6 

614 
16 
882 
511 
6,954 
5,421 
2,687 


241,844  38,855 


TOTAL 

Ships 

Tonnage 

102 

83,529 

190 

41,547 

141 

91,581 

9 

4,622 

15 

2,521 

3 

942 

10 

3,500 

46 

17,912 

17 

1,112 

47 

1,000 

22 

6,026 

91 

6,954 

367 

15,621 

107 

2,826 

I 


1,167       280,699 


Nationalities  of  Ships^S  ailing  from  Venezuelan  Ports. 

FLAGS              SHIPS  TONNAGE 

Steam    Sail  Steam       Sail 

American 63     18  82,332     5,857 

Colombian 4  257 

Spanish 6  24,141 

French .  4      2  14,331         134 

Dutch.., 23  131  17,445    11,019 

English 56      8  48,391         407 

Italian 3  15,441    

Norwegian 15  19,038   

Venezuelan 67  767  20,725   21,181 

241,844   38,855 


TOTAL 

Ships  Tonnage 
81    88,189 
257 
24,141 
14,465 
28,464 
48,798 
15,441 
19,038 
41,906 


4 
6 
6 

154 
64 
3 
15 
834 


Total 237  930 


1,167   280,699 


Venezuela  Report 


59 


Number  of  Ships  Sailing  from 
PORTS  SHIPS 

Steam    Sail 
La  Guaira 45     48 


Maracaibo  

i-»         ^tu 

63  121 

Puerto  Cabello  

34  135 

Tucasas  

1      9 

Ciudad  Bolivar  

23      1 

Barancas  

2     17 

Carupano  

14    23 

Rio  Cariba  

4      6 

Puerto  Sucre  

1     24 

Guanta  

6     12 

La  Vela  

68 

Cristobal  Colon  

8  367 

Pampator 4  137 

Total 205  968 


Each  Port 

,  July—  December,  1918. 

TONNAGE 

TOTAL 

Steam 

Sail 

Ships 

Tonnage 

93,167 

3,449 

93 

96,616 

28,565 

8,280 

184 

36,845 

105,769 

2,521 

169 

108,29a 

1,021 

746 

10 

1,767 

6,809 

9 

24 

6,818 

481 

249 

19 

730- 

6,626 

578 

37 

7,204 

280 

107 

10 

387 

30 

911 

25 

941 

2,080 

845 

18 

2,925 

3,903 

68 

3,903 

7,974 

5,939 

375 

13,913- 

111 

4,445 

141 

4,556 

252,913   31,982 


1,173       284,895 


Nationalities  of  Ships  Sailing  from  Venezuelan  Ports. 


FLAGS  SHIPS 

Steam    Sail 

American... 60       7 

Spanish 15  

French 22      9 

Dutch 17  106 

English 44     10 

Italian 4  

Norwegian 7  

Venezuelan 36  836 


Total 205  968 


TONNAGE 

Steam  Sail 

81,078  1,659 

57,788   

11,893  1,910 

9,404  5,859 

53,090  696 

22,772   

9,582   

7,306  21,858 

252,913  31,982 


TOTAL 

Ships  Tonnage 
67         82,737 
57,788 
13,803 
15,26S 
53,786 
22,772 
9,582 
29,164 


15 

31 

123 

54 

4 

7 

872 


1,173       284,895 


As  can  readily  be  seen  from  these  figures  the  chief  commerce 
of  Venezuela  is  with  American  and  European  countries.  The 
shipping  service  is  of  two  kinds — line  service  and  tramp  or 
charter  service.  The  former  consists  of  actual  steamship  lines 
under  an  organized  company,  operating  on  regular  itineraries 
and  on  stated  dates  with  regular  rates  for  freight,  passenger  and 
mail  service.  The  latter  refers  chiefly  to  sailing  vessels  of  small 
tonnage,  either  engaged  independently  in  trade  or  under  charter 
contract  with  firms  or  individual  shippers  for  a  certain  stipu- 
lated length  of  time,  at  certain  rates  mutually  agreed  upon,  and 
for  stated  cargoes  and  voyages. 

Since,  in  this  connection,  line  service  is  of  the  most  importance 


60  School  of  Foreign  Service 


we  shall  first  take  up  the  various  steamship  lines  operating 
between  Venezuelan  ports  and  other  ports  of  the  world. 

TRANS-ATLANTIC  COMPANY  OF  BARCELONA 

This  is  a  Spanish  line  of  steamships,  having  its  home  office  at  Barce- 
lona, Spain.  It  was  established  January  21,  1882,  and  supplies  a  passen- 
ger, freight  and  mail  service,  making  one  voyage  each  month  at  intervals 
somewhat  irregular.  Its  itinerary  comprises  the  following  ports: 

Barcelona,  Genoa,  Puerto  Rico,  Habana,  Puerto  Limon,  Colon, 

Puerto  Colombia,  Curacao,  Puerto  Cabello,  La  Guaira,  Puerto  Rico, 

Barcelona. 

The  vessels  in  service  are  the  Montevideo,  Buenos  Aires,  Lyaysi, 
Montserrat,  Antonio  Lopez,  Manuel  Calvo,  Satrustyui. 

Because  of  the  length  of  time  taken  in  transit  this  line  does  a  greater 
freight  than  passenger  business.  Its  rates  are  governed  by  those  of 
other  European  steamship  companies,  since  they  are  united  under  a 
gigantic  ocean-carriers'  agreement,  which  will  be  discussed  later. 

COMPAGNIE  GENERAL  TRANS-ATLANTIQUE 

This  is  a  French  line,  established  June  27,  1872,  with  its  home  office  in 
Paris.  It  supplies  a  monthly  service  for  passengers,  freight  and  mail. 
Its  itinerary  formerly  was: 

Nazaire,  Point  a  Pitre,  La  Guaira,  Puerto  Colombia,  Cartagena, 

Colon,  Puerto  Colombia,  Puerto  Cabello,  Port  de  France,  St.  Nazaire 

and  Bordeaux. 

(N.  B. — According  to  information  recently  received,  this  line  now 

also  calls  at  Havre.) 

The  vessels  in  service  are  the  Peron,  Puerto  Rio,  and  Haiti.  The 
service  is  not  as  regular  as  could  be  desired  and  rates  are  governed  by 
the  same  conditions  which  apply  to  the  Spanish  company  previously 
mentioned. 

ROYAL  DUTCH  WEST  INDIA  MAIL 

This  is  a  Dutch  line,  having  its  home  office  in  Amsterdam,  Holland. 
Its  service  was  crippled  during  the  war,  but  it  was  reestablished  in  Octo- 
ber, 1919.  It  supplies  a  freight  and  passenger  service  every  fifteen  days 
between  the  following  points: 

Amsterdam,  Holland,  La  Havre,  La  Guaira,  Puerto  Cabello,  Curacao 

Puerto  Colombia,  Cartagena,  Puerto  Limon  and  Cristobal. 

The  vessels  now  in  service  are  the  Stella,  Crynssen,  Styvessant  and 
Orange  Nassam. 

HARRISON  LINE 

This  is  a  British  line,  established  in  June  28,  1875,  with  its  home  office 
in  Liverpool,  England.  It  supplies  a  monthly  freight  and  mail  service 
between  the  following  ports: 

Liverpool,  Barbadoes,  Trinidad,  La  Guaira,  Puerto  Cabello,  Curacao 

Puerto  Colombia,  Cartagena,  Colon,   Beloge,  Puerto   Barrios,  New 

Orleans,  Galveston,  Liverpool. 


Venezuela  Report  61 

The  vessels  in  service  are  the  Dictator,  Author,  Orator,  Senator  and 
Benefactor. 

LEYLAND  LINE 

This  is  a  British  line,  operating  between  the  same  ports  as  the  Harrison 
Line,  and  also  has  its  home  office  in  Liverpool.  It  supplies  a  semi- 
monthly freight  and  mail  service  between  these  ports.  The  vessels 
now  in  service  are  the  Antillian,  Alexandrian,  Median,  Nortonian,  Nobian 
Asian  and  Nossian.  These  two  British  lines  are  most  important  as  freight 
and  mail  carriers,  the  passengers  carried  being  relatively  small  in  number. 

LA  VELOCE   LINE 

This  is  an  Italian  line  having  its  home  office  in  Genoa,  Italy.  It  was 
established  in  1890  and  supplies  an  irregular  freight,  passenger  and  mail 
service  between  the  following  ports: 

Genoa,    Marseilles,    Barcelona,    Teneriffe,    Trinidad,    La    Guaira, 

Puerto  Cabello,  Caracao,  Puerto  Colombia,  Cartagena,  Port  Limon,. 

Colon  and  Genoa. 

Its  vessels  in  service  are  the  Europa  and  Bologna. 

TRANSATLANTIC   ITALIAN   COMPANY 

This  is  another  Italian  company  operating  steamships  between  that 
country  and  the  Americas.  It  is  a  new  company,  the  service  having 
been  established  August  10,  1920,  with  home  office  in  Genoa,  Italy. 
Its  itinerary  comprises  the  following  ports: 

Genoa,  Marseilles,  Barcelona,  Cadiz,  Teneriffe,  Trinidad,  La  Guaira, 
Puerto  Cabello,  Curacao,  Puerto  Colombia,  Cristobal,  Balboa,  Guaya- 
quil, Callao,  Mollendo,  Arica,  Casigua,  Aristo,  Fagasta,  Valparaiso- 
and  Genoa. 

This  line  is  equipped  with  three  12,000  ton  motor  vessels  of  recent 
design;  the  San  Georgio  I,  San  Georgio  II,  and  San  Georgio  III,  and 
supplies  a  passenger  and  freight  service. 

These  ships  carry  merchandise  and  raw  material  from  La  Guaira  and 
Puerto  Cabello  to  less  accessible  ports  like  Ciudad  Bolivar,  and  from  the 
latter  port  to  the  northern  coast  this  company  is  rapidly  increasing  the 
number  and  tonnage  of  its  vessels  and  undoubtedly  will  be  an  important 
factor  in  the  commercial  progress  of  Venezuela  in  the  years  to  come. 


In  referring  to  the  great  European  steamship  lines  which 
touch  Venezuelan  ports  I  mentioned  the  fact  that  a  combination 
to  control  freight  rates  existed.  This  is  simply  an  agreement 
by  which  these  companies  agree  on  maximum  and  minimum 
rates  to  be  charged  on  certain  classes  of  goods.  Undoubtedly 
such  pooling  has  its  disadvantages,  since  it  tends  to  keep  com- 
petition out  of  the  field. 


62  School  of  Foreign  Service 

We  come  now  to  a  consideration  of  the  one  American  line 
operating  between  New  York  and  La  Guaira,  ;.  e.y  the  "Red 
D  Line"  of  steamships.  I  have  purposely  saved  this  for  the 
last  since,  in  considering  this  subject  from  an  American  view- 
point, it  is  naturally  the  most  important.  This  line  carries  the 
mail,  passenger  and  freight  from  American  ports  to  those  of 
Venezuela,  and  is  responsible  to  a  great  extent  for  the  proper 
delivery  of  merchandise  sold  to  Venezuelan  companies  by 
American  firms. 

The  Red  D  Line  has  its  home  office  in  New  York  City,  with 
branch  offices  in  Caracas,  San  Juan,  P.  R.;  Curasao,  W.  I.; 
Puerto  Cabello  and  Maracaibo.  It  is  under  contract  with  the 
United  States  Government  for  the  transportation  of  mail,  and 
supplies  a  weekly  service  between  New  York,  Porto  Rico, 
Curacao  and  Venezuela. 

In  regard  to  rates  and  charges,  among  the  most  important  of 
this  company's  regulations  are  the  following: 

(1)  Rates  are  assessed  per  cubic  foot,  or  100  pounds  ship's  option, 
except  as  otherwise  provided. 

(2)  Packages  containing  different  articles  will  be  charged  the  tariff 
rate  for  the  highest  class  article  contained  therein. 

(3)  Packages  of  more  than  $100.00  in  value  must  be  noted  on  ships 
receipts  when  such  goods  are  offered  at  the  pier.     Charges  on  packages 
of  this  kind  wilJ  be  in  addition  to  tariff  ^  of  1%  on  all  values  over  $100.00 
per  package.     This  company  will  not  be  liable  in  the  event  of  loss  or 
damage  from  any  cause  whatever  as  detailed  in  bills  of  lading,  for  more 
than  $100.00  per  package  unless  such  value  is  shown  on  shipping  receipts 
and  extra  freight  paid  thereon. 

(4)  Minimum  charge  to  San  Juan,  P.  R.,  $3.00;  to  Curasao,  Mara- 
caibo, Coro  and  Puerto  Cabello,  $5.00;  to'  La  Guaira,  Ven.,  $5.00  plus 
wharf  dues. 

(5)  Heavy  or  bulky  packages  by  special  arrangement  only. 

(6)  This  company  requires  two  copies  of  bills  of  lading  to  San  Juan, 
P.  R.,  and  Curasao,  D.  W.  I.,  and  five  copies  to  La  Guaira,  Puerto 
Cabello,  Maracaibo  and  Coro,  Venezuela.1 

There  are  many  additional  regulations  covering  special  cases, 
which  it  is  impossible  to  enumerate  here.  For  those  interested 
I  would  recommend  a  copy  of  the  Red  D  Line  Freight  Tariff 
No.  1-A,  which  may  be  secured  at  any  of  this  company's  offices. 

The  ships  now  in  service  for  this  line  are  the  Caracas,  3,000 
tons;  Philadelphia,  2,500  tons;  Merida,  630  tons,  and  the  twin 

'Red  D  Line  Freight  Tariff  No.  A-l. 


Venezuela  Report  63 

screw  steamers  Maracaibo  and  Zulia,  1,800  tons  each.  Two 
additional  vessels  for  use  on  this  line  are  now  under  construc- 
tion in  the  States. 

At  the  present  time,  however,  it  is  to  be  regretted  that  com- 
paratively poor  and  irregular  service  exists  between  the  two 
Americas.  American  salesmen  and  business  men  operating  in 
Venezuela  constantly  complain  of  delays  in  forwarding  mail  and 
merchandise  resulting  in  financial  loss  for  themselves  and  creat- 
ing dissatisfied  customers.  Considering  the  existing  monopoly 
in  communication,  it  is  surprising  that  trade  between  Venezuela 
and  America  has  progressed  to  the  extent  that  it  has.  Vene- 
zuela is  a  rich  country  and  can  supply  many  varieties  of  agri- 
cultural products  to  the  United  States;  on  the  other  hand,  she 
must  look  to  the  United  States  for  manufactured  goods,  machin- 
ery, etc.,  to  enable  her  to  prosper.  There  is  a  wonderful  open- 
ing for  American  capital  in  the  country  of  Simon  Bolivar,  but  it 
never  can  be  fully  realized  until  ocean  communication  between 
the  two  sister  republics  is  greatly  improved. 

CABLE    COMMUNICATION 

Cable  communications  with  the  exterior  are  at  present  mon- 
opolized by  the  "French  Company  of  Telegraph  and  Cables," 
through  a  concession  which  lasts  until  1929.  This  privilege  is 
based  on  the  first  article  of  contract  which  governs  the  Com- 
pany's relations  with  the  Government  of  Venezuela;  the  privi- 
lege is  exclusive  and  the  controlling  lines  run  from  La  Guaira 
and  La  Vela,  ports  of  "Venezuela,  to  the  Dutch  Island  of  Curasao, 
thence  to  the  Republic  of  Haiti,  and  thence  to  New  York  and 
France.  The  price  per  word  from  Venezuela  to  New  York  is 
five  bolivares  (approximately  one  dollar  under  normal  exchange) 
but  because  of  various  tariffs  assessed  by  the  company,  and 
extra  charges  in  delivery,  the  rates  usually  exceed  that  figure. 
Moreover  the  service  is  poor  and  uncertain,  interruptions  are 
frequent  and  a  cable  can  not  be  depended  upon  in  matters  of 
urgent  importance.  The  company  has  not  improved  its  service 
and  methods  to  meet  the  growing  needs  of  an  expanding  business 
Something  must  be  done  to  solve  this  difficulty  of  cable  com- 
munication before  the  potentialities  of  Pan-American  trade  can 
ever  be  realized.  But  it  can  not  be  solved  without  the  abolition 
or  modification  of  the  present  monopoly. 


64  School  of  Foreign  Service 

WIRELESS    COMMUNICATION 

Closely  linked  with  the  question  of  cable  communication  is 
the  problem  of  establishing  wireless  communication  with 
foreign  countries.  In  this  connection  the  recent  severance  of 
relations  with  Germany  resulting  in  a  scarcity  of  materials  and 
high  prices  greatly  retarded  the  installation  of  an  improved 
wireless  system  with  the  outside  world.  But  on  October  15, 
1919,  the  government  of  the  Republic  of  Venezuela  decided  to 
call  for  bids  for  the  construction  of  a  wireless  telegraph  station 
in  the  neighborhood  of  Caracas,  the  capital  of  the  Republic. 

The  geographical  situation  of  Caracas  is  as  follows:  Latitude 
North  10°-30'-24".  Longitude  4°-25'-4"  West  of  the  Meridian 
of  Greenwich.  Its  altitude  above  the  sea  level  is  922  meters 
and  its  distance  from  the  Caribbean  Sea  10  kilometers.  Caracas 
is  separated  from  the  coast  by  a  branch  of  the  Andes  Mountains 
which,  in  that  part  nearest  to  the  city,  are  1,800  meters  above 
sea  level. 

The  technical  conditions  of  the  plant  are: 

(1)  The  station  must  be  of  sufficient  capacity  to  communicate  with 
similar  stations  in  Europe  and  the  United  States  of  America. 

(2)  The  station  shall  contain  a  plant  for  the  emission  of  loud  voices 
and  another  plant  for  the  emission  of  subdued  voices  intended  for  com- 
municating with  wireless  stations  not  yet  equipped  with  the  system  of 
loud  waves. 

(3)  The  necessary  electric  power  will  be  furnished  by  a  private  con- 
cern in  the  shape  of  190  volt,  50  cycle,  3  phase,  alternating  current  as 
used  in  Caracas. 

(4)  Furthermore,  the  installation  shall  include  a  set  of  reserve  motors. 

The  bids  must  contain: 

(1)  The  general  plan  of  the  plant  and  the  necessary  detailed  plans 
and  cuts  drawn  on  a  convenient  scale. 

(2)  A  general  description  of  the  apparatus. 

(3)  The  time  necessary  for  its  construction. 

(4)  Total  cost  of  the  station.     The  amount  will  be  paid  in  Caracas 
in  quarterly  installments,  cash,  at  the  end  of  each  quarter,  in  accordance 
with  the  progress  of  the  work.     The  government  will  retain  10%  of  the 
amounts  of  each  payment,  which  sum  will  be  paid  to  the  contractor  after 
compliance  with  the  provisions  of  the  next  article. 

(5)  The  assumption  of  an  obligation  by  the  bidder  to  manage  the 
station  during  six  months  after  its  completion  as  a  proof  of  delivery  in 
good  working  order.     After  this  has  been  proved,  the  aforesaid  10%  of 
the  cost  of  the  work  will  be  paid  to  the  contractor. 


BOLIVAR'S  HOME   IN  THE   MOUNTAINS  WITH   STATUE  OF   THE  HERO, 
CAPTAIN  RICAURTE 


ON  THE  ROAD  FROM  MARACAV  TO  CARACAS 


Facing  p.  65 


Venezuela  Report  65 

The  bids  must  be  sent  to  the  Minister  of  Fomento  of  Venzuela  before 
the  last  day  of  June,  1920.  On  the  last  day  of  August,  1920,  in  a  Cabinet 
Meeting,  the  bid  which  in  the  opinion  of  the  Federal  Executive  offers 
the  greatest  advantage  will  be  accepted,  while  the  Government  reserves 
the  right  to  reject  all  bids  if  it  is  deemed  convenient. 

Any  responsible  construction  concern — national  or  foreign — special- 
izing in  this  work  may  send  in  a  bid. 

The  importance  of  this  proposed  wireless  station  is  very  evi- 
dent to  those  interested  in  Venezuela,  and  its  prosperity.  By 
establishing  direct  and  efficient  communication  between  this 
country  and  America  and  Europe,  it  will  open  the  way  to  vast 
trade  possibilities. 

Having  thus  discussed  the  three  methods  of  communication 
which  are  of  paramount  importance  in  foreign  trade,  we  can  not 
but  realize  that  Venezuela  has  been  working  under  a  serious 
handicap.  However,  she  has  made  great  progress  in  the  last 
decade  and  it  is  to  be  hoped  that  under  a  wise  government  she 
will  continue  her  sound  trade  policies  and  before  many  years 
will  take  her  proper  place  among  the  leading  commercial  nations 
of  the  world. 

Philip  D.  Sullivan. 


TRANSPORTATION  FACILITIES 

Pronounced  improvements  in  the  political,  economic  and 
social  life  of  the  Republic  of  Venezuela  have  been  effected  within 
the  last  few  years  by  the  construction,  upon  a  broad  and  com- 
prehensive scale,  of  a  system  of  national  highways  totalling,  in 
extent  of  completed  roads,  2,900  kilometers  (approximately 
1,800  miles).  These  have  been  specifically  designed  to  bear  the 
burden  of  motor  transportation  both  of  passengers  and  freight, 
as  well  as  of  all  classes  of  vehicular  and  equestrian  traffic.  Built 
primarily  with  a  military  objective,  these  roads  already  have 
come  to  serve  the  routine  needs  of  peace,  while  being  at  all  times 
available  for  the  exigencies  of  war.  They  provide  a  means  for 
the  quick  mobilization  of  the  Venezuelan  army  of  50,000  men 
at  any  of  the  principal  strategic  points  of  the  country.  Infan- 
try, cavalry  or  artillery  may  with  equal  facility  and  despatch 
pass  over  any  of  these  roads  to  a  given  rendezvous.  The  broad, 


66  School  of  Foreign  Service 

smooth  highways  compass  distances,  grades  and  defiles  that 
hitherto  presented  almost  impassable  barriers  to  the  quick  and 
flexible  movement  of  military  forces. 

If  heretofore  the  army  suffered  from  a  lack  of  adequate  trans- 
portation facilities,  the  commerce  of  Venezuela  too  was  woefully 
handicapped.  One  of  the  greatest  and  most  coveted  of  Vene- 
zuela's assets  is  her  magnificent  coastline  of  hundreds  of  miles 
on  the  Caribbean  Sea.  To  realize  the  serious  difficulties  under 
which  her  rich  interior  labored  in  seeking  an  egress  to  foreign 
markets,  it  need  only  be  noted  that  until  the  completion,  during 
the  last  decade,  of  the  highway  system  with  its  three  separate 
routes  from  three  chief  ports  of  the  republic  to  the  capital  and 
interior  centers  of  industry,  the  country  had  the  use  of  only  two 
railway  lines.  These  lines  were  well  constructed,  it  is  true,  but 
offered  an  indifferent  service  at  a  prohibitive  tariff  with  amaz- 
ingly excessive  wharf  and  terminal  charges.  The  only  available 
alternative  to  these  consisted  of  old  Spanish  trails  up  and  down 
the  mountain  sides  where  the  necessity  of  walking  in  single  file 
hazarded  the  necks  of  man  and  beast. 

With  respect  to  the  technique  of  construction  and  mainten- 
ance of  the  highways  of  the  new  system,  local  considerations 
and  the  requirements  of  the  major  volume  of  traffic  normally 
moving  into  or  out  of  a  given  section  have  been  carefully  taken 
into  account.  On  the  level  stretches  of  the  extensive  llanos  in 
the  interior,  advantage  has  been  taken  of  natural  dirt  bases  for 
roads  that  have  come  to  sustain  the  burden  of  the  enormous 
production  of  cattle,  grain,  corn,  coffee,  cotton  and  sugar  sent 
forth  from  those  fertile  plains.  On  the  precipitous  mountain 
slopes  of  the  massive  watershed  that  divides  the  highland 
llanos  from  the  sea,  macadam  has  been  the  principal  material 
used;  this  has  been  true  also  in  other  mountain  districts  of  the 
Republic.  In  general,  American  and  English  principles  of  road- 
bed construction  have  been  employed  and  great  numbers  of 
steel  bridges  and  not  a  few  suspension  bridges  have  been 
designed,  imported  and  set  up  by  leading  American  bridge- 
building  corporations. 

The  improved  route  from  Caracas  to  Guatire  has  made  the 
latter  accessible  at  all  times  to  the  capital.  The  route  from 
Caracas  to  Barquisimeto  supplies  a  direct  road  from  the  capital 
to  the  center  of  the  Venezuelan  Andes,  while  the  one  from 


•om 


Venezuela  Report  67 

Maracay  to  Ocumare  de  la  Costa  leads  directly  to  the  sea  at  the 
point  of  juncture  of  the  two  greatest  highways,  opening  the  way 
to  the  agricultural  and  cattle  raising  industries  of  the  central 
region  of  the  Republic. 

The  Great  Eastern  Highway  leads  from  Caracas  through  the 
states  of  Miranda,  Auzoategui  and  Bolivar  to  the  mineral  region 
of  interior  Guayana.  The  Great  Western  Highway  connects 
the  center  of  the  Republic  with  the  remotest  western  regions, 
leading  from  Caracas  to  Valencia,  San  Carlos,  Guanare,  San 
Antonio  de  Caparo  and  San  Cristobal.  It  crosses  the  most 
densely  populated  part  of  Venezuela  and  promises  to  be,  in  the 
near  future,  the  principal  artery  of  communication.  Tele- 
graphic connection  is  constantly  maintained  between  the  road 
engineers  and  the  minister  of  public  works.  The  highway  from 
Turmero  to  Calabozo  is  likely  to  become  the  bond  of  union 
between  the  great  eastern  and  western  highways.  It  has  main- 
tained traffic  for  the  first  time  in  the  llanos  during  the  rainy 
season,  thus  furnishing  a  constant  outlet  for  the  wonderful 
productivity  of  this  region.  Steam  rollers  and  other  standard 
mechanical  apparatus  have  been  employed  in  the  construction 
work,  while  recently  the  authorities  have  commenced  to  use  the 
superficial  petrolization  process  for  laying  the  dust  and  counter- 
acting the  impairment  of  the  roadbed  by  the  rapidly  increasing 
automobile  traffic. 

The  equipment  of  the  highways  has  brought  to  the  fore 
another  characteristic  and  interesting  Venezuelan  institution — 
the  road  workmen — who  fulfill  a  dual  function  in  the  task  they 
assume  when  a  road  or  section  is  completed:  that  of  attending 
to,  or  assisting  in,  its  upkeep  or  repair,  guarding  against  viola- 
tion of  the  regulations  laid  down  for  its  use  by  the  public,  and 
otherwise  policing  a  stretch  that  is  three  kilometers  upon  mac- 
adam roads  and  two  kilometers  upon  natural  dirt  roads.  The 
"peones  camineros"  represent  but  another  and  latter-day 
application  to  public  service  of  the  marvelously  faithful,  intelli- 
gent and  efficient  common  labor  of  the  country. 
"  The  mileage  mentioned  above  is  practically  for  motor 
1  vehicles  and  is  constantly  used  by  the  2,000  passenger  cars  in 
active  service.  Had  the  new  road  system  been  inspired  and 
carried  into  execution  by  American  builders  for  the  advancement 
of  their  own  people's  interests,  they  could  scarcely  have  served 


68  School  of  Foreign  Service 

more  thoroughly  the  purpose  of  American  commerce.  From 
the  outset,  these  roads  have  operated  to  strengthen  this  coun- 
try's position  as  a  producer  and  exporter  of  automobiles.  Thus 
a  vital  public  improvement,  undertaken  by  the  Venezuelan 
Government,  operated  primarily  to  establish  an  altogether  new 
market  for  one  of  the  chief  industrial  products  of  the  United 
States.  Yet  despite  the  fact  that  the  capital  of  Venezuela,  Cara- 
cas, has  a  population  of  100,000  and  boasts  of  having  1,000 
automobiles  or  one  car  for  every  hundred  citizens,  relatively  few 
motor-trucks  are  to  be  seen  there  or,  in  fact,  elsewhere  in  Vene- 
zuela. 

Nevertheless,  it  requires  neither  seer  nor  prophet  to  foresee 
practically  unlimited  opportunities  throughout  the  land  of 
Bolivar  for  every  kind  and  class  of  American  manufactures, 
from  agricultural,  mining  and  factory  machinery  to  the  smallest 
articles  of  merchandise;  and  this  as  the  direct  result  of  the  build- 
ing and  extension  of  the  Venezuelan  highway  system.  For 
transporting  these  manufactures  from  ship's  side  to  interior 
communities — some  of  them  Spanish  colonial  settlements  that 
have  flourished  for  almost  four  hundred  years  but  which  until 
now  have  not  known  American  importations — there  is  only  one 
logical  and  available  instrument, — the  American  motor-truck. 

RAILROADS 

The  standard  gauge  of  the  United  States  and  Canada,  1.435 
meters  between  rails,  was  adopted  by  the  National  Congress  of 
1912,  an  act  necessary  for  any  great  capacity  of  railroad  trans- 
portation as  well  as  the  assurance  of  an  immediate  and  adequate 
supply  of  materials. 

Laws  were  promulgated  June  12,  1917,  and  June  4,  1918,  for 
the  concession,  construction  and  operation  of  railroads  by  domes- 
tic and  foreign  companies  or  individuals,  containing  the  follow- 
ing provisions: 

1.  That  all  enterprises  be  approved   by  the  National 
Congress;  that  all  controversies  be  settled  in  Venezuelan 
courts ;  that  one-half  of  the  employees  be  from  Venezuela, 
and  that  no  interest  be  guaranteed  by  the  government  on 
capital  invested. 

2.  That  complete  plans  of  any  railroad  project  be  sub- 
mitted to  the  minister  of  public  works  prior  to  beginning 


Venezuela  Report  69 

operations,  and  that  deposits  of  money  be  placed  in  the 
national  treasury  as  a  guarantee  of  integrity. 

3.  That    regulations    and    standard    measurements    be 
carefully  observed;  also  provisions  for  roadbeds,  crossings, 
etc. 

4.  That  the  right  be  reserved  to  the  National  Govern- 
ment to  take  over  railroads  after  forty  years  of  service,  if 
desired. 

5.  That  rival  lines  in  close  proximity  to  those  already 
constructed  be  prohibited,  and  that  branches  or  prolonga- 
tions of  existing  lines  be  permitted  in   accordance  with 
regulations. 

6.  That  rates  fixed  by  owners  be  approved  by  the  public 
ministry;  that  mails  be  carried  free,  and  that  reductions  be 
allowed  to  government  employees;  and  materials  destined 
for  the  improvement  of  public  works  shall  be  transported 
at  reduced  rates. 

7.  PRIVILEGES:  that    no  oppressive  taxes  be  levied  on 
railroads;  that  a  fair  proportion  of  unclaimed  lands  be  con- 
ceded to  railways;  that  free  transportation  be  allowed  rail- 
way construction  material;  that  railways  be  permitted  to 
erect  telegraph  and  telephone  lines  provided  the  government 
be  granted  gratuitous  use  of  them;  and  that  the  employees 
be  free  from  military  service,  except  in  case  of  international 
war. 

There  are  twelve  railroad  systems  in  Venezuela  at  the  present 
time  with  a  combined  length  of  600  miles  and  40  millions  of 
dollars  invested  capital. 

1.  The  Bolivar  Railroad  Company  owned  and  financed  by  the  English 
with  a  working  capital  of  $5,914,075  was  the  first  railroad  of  Venezuela. 
The  road  is  88^  kilometers  long,  the  gauge  0.61  meters.     It  has  165  bridges 
and  20  stations;  the  route  is  from  Tucacas  to  Aroa.     The  number  of  pass- 
engers carried  in    1919   was  24,408,  and  during  the  same  period  freight 
amounted  to  38,820  tons. 

2.  The  La  Guaira-Caracas  Railroad  is  over  23  miles  in  length  and 
carries  the  greatest  part  of  the  products  of  the  country;  it  serves  more  than 

^Jjalf  of  the  central  part  of  the  republic.  This  railroad  is  the  most  important 
(  railroad  in  Venezuela,  because  it  has  direct  connection  with  the  Valencia 
and  Puerto  Cabello  Railroad  and  the  railroad  going  to  Ocumare  de  la  Costa. 
The  length  is  35. 5  kilometers,  the  gauge  0.915  meters.  There  are  10  bridges, 
8  tunnels  and  9  stations  and  the  route  is  from  La  Guaira  to  Caracas.  It  is 
owned  by  the  English  with  a  capital  of  $4,175,000.  The  number  of  passen- 
gers carried  in  1919  was  73,305  and  freight  amounted  to  76,335  tons. 

3.  The  Valencia-Puerto   Cabello  Railroad   Company  is  the  second 
most  important  railway  in  Venezuela  and  performs  the  same  service  as  the 
La  Guaira  to  Caracas  Railroad.     It  is  owned  and  financed  by  the  English 


70  School  of  Foreign  Service 

with  a  working  capital  of  $4,141,000.  It  has  a  length  of  54  kilometers,  the 
gauge  is  1.07  meters  and  there  are  23  bridges,  1  tunnel  and  6  stations  along 
the  route  from  Valencia  to  Puerto  Cabello.  The  number  of  passengers 
carried  in  1919  was  53,990  and  freight  amounted  to  55,121  tons. 

4.  The  Grand  Railroad  of  Venezuela  is  owned  and  financed  by  Ger- 
mans with  a  working  capital  of  $15,000,000.     The  length  is  179  kilometers, 
the  gauge  1.07  meters,  there  are  212  bridges,  86  tunnels  and  25  stations. 
The  route  is  from  Caracas  to  Valencia.     The  number  of  passengers  carried 
in  1919  was  211,442  and  freight  amounted  to  76,335  tons.     The  rolling 
stock  of  this  road  consists  of  18  locomotives,  with  a  combined  weight  of 
720  tons,  30  passenger  coaches,  68  flat  cars,  60  box  cars  and  19  stock  cars. 
The  passenger  tariff  equals  6^  cents  per  mile  for  second  class  and  7.78 
cents  for  first  class.     Freight  rates  are  equivalent  to  15.65  cents  per  ton 
mile.     The  freight  traffic  is  small  and  nearly  half  the  revenue  is  from  pass- 
engers carried.     The  management  attempted  some  development  work  in 
tree  planting,  the  introduction  of  new  crops,  and  the  improvement  of  stock, 
but  the  grasshopper  plague  affected  the  results. 

5.  The  Guanta-Barcelona  Railroad  is  owned  and  financed  by  a  Ven- 
ezuelan company  with  a  working  capital  of  $300,000.     This  road  is  18.5 
kilometers  long,  the  gauge  1.07  meters;  there  are  4  bridges  and  6  stations. 
The  route  is  from  Guanta  to  Barcelona.     The  number  of  passengers  carried 
in  1919  was  13,553  and  freight  amounted  to  28,863  tons. 

6.  The  Railroad  of  Carenero  is  owned  and  financed  by  the  French 
with  a  working  capital  of  $1,576,800.     It  is  33  kilometers  long,  the  gauge 
0.915  meters;  there  are  57  bridges  and  5  stations;  the  route  is  from  Carenero 
to  San  Jose".     The  number  of  passengers  carried  in  1919  was  20,037  and 
freight  amounted  to  6,923  tons. 

7.  The    Maiquetia-Macuto    Railroad    is   owned    and   financed    by 
the  English  with  a  working  capital  of  $100,000.     The  length  is  7  kilometers, 
the  gauge  0.915  meters;  there  are  8  bridges  and  4  stations.     The  route  is 
from  Maiquetia  to  Macuto.     The  number  of  passengers  carried  in  1919  was 
430,668  and  freight  amounted  to  2,563  tons. 

8.  The  Central  Railroad  of  Venezuela  is  owned  and  financed  by  the 
English  with  a  working  capital  of  $3,484,500.     The  length  is  60  kilometers, 
the  gauge  1.07  meters;  there  are  23  bridges,  14  tunnels  and  7  stations;  the 
route  is  from  Caracas  to  the  station  Tereza.     The  number  of  passengers 
carried  in  1919  was  326,945  and  freight  amounted  to  22,971  tons. 

9.  The  La  Ceiba  Railroad  is  owned  and   financed   by  a  Venezuelan 
Company   with   a   working  capital  of  $1,600,000.     The   length   is   81.5 
kilometers,  the  gauge  0.915  meters;  there  are  43  bridges  and  5  stations; 
the  route  is  from  La  Ceiba  to  Roncayolo.     The  number  of  passengers 
carried  in  1919  was  9,649  and  freight  amounted  to  21,706  tons. 

10.  The    La    Vela-Coro    Railroad    is  owned   and  financed   by  the 
Venezuelan  Government  with  a  capital  of  $208,000.     The  length  is  13.5 
kilometers,  the  gauge  0.915  meters;  there  are  8  bridges  and  3  stations;  the 
route  is  from  La  Vela  to  Coro.     The  number  of  passengers  carried  in  1919 
was  6,681  and  freight  amounted  to  10,828  tons. 

11.  The  Grand  Railroad  of  the  Tachira  is  owned  and  financed 


ibya 


Venezuela  Report  71 

Venezuelan  Company  with  a  capital  of  $1,500,000.  The  length  is  115 
kilometers,  the  gauge  1.07  meters;  there  are  3  bridges  and  13  stations;  the 
route  is  from  Uraca  to  Tachira.  The  number  of  passengers  carried  in  1919 
was  19,070  and  freight  amounted  to  19,562  tons. 

12.  The  Santa  Barbara-El  Vigia  Railroad  is  owned  and  financed  by 
the  Venezuelan  Government  with  a  working  capital  of  $600,000.  The 
length  is  60  kilometers,  the  gauge  1.07;  there  are  37  bridges  and  3  stations; 
the  route  is  from  Sta.  Barbara  to  El  Vigia.  The  number  of  passengers 
carried  in  1919  was  11,940  and  freight  amounted  to  17,821  tons. 

On  several  of  the  main  roads  traffic  is  lighter  now  than  twenty- 
five  years  ago,  and  notwithstanding  the  fact  that  rail  transpor- 
tation costs  no  more  than  that  by  pack  mule,  scarcely  any  of  the 
railway  enterprises  have  earned  a  fair  return  upon  the  capital 
invested,  though  certainly  transportation  has  been  quickened 
and  rates  have  been  steadied,  if  not  cheapened.  The  principal 
reasons  for  this  lack  of  earning  power  lie  in  the  sparseness  of  the 
population,  and  its  distribution  along  a  long  narrow  strip  of 
territory  skirting  the  seaboard,  a  condition  which  leads  to  the 
building  of  unconnected  lines  with  short  hauls.  Contributory 
reasons  are  the  moderate  producing  and  consuming  power  of 
the  people,  and  the  general  refusal  of  the  lines  to  grant  low 
rates  for  the  transportation  of  commodities  of  small  value. 

The  waterways  of  Venezuela,  numerous  and  general  as  they 
appear  on  the  map,  are  singularly  disappointing  on  closer  inves- 
tigation. The  great  Orinoco  is  a  fine  natural  highway,  it  is 
true,  as  far  as  Pericos,  some  600  miles  from  the  mouth,  but  here 
the  river  is  broken  by  the  rapids  of  Atures,  and  beyond  by  those 
of  Maipures,  hence  it  is  impossible  for  large  boats  to  pass  through 
to  the  upper  river.  The  Apure,  Arauca,  and  Meta  are,  of  course, 
useful  means  of  communication  with  the  Colombian  border 
regjfons  and  the  southwestern  llanos,  but  the  numerous  tribu- 
taries on  the  north  side  are  generally  too  variable  in  depth  for 
permanent  traffic,  and  those  on  the  south,  as  we  have  seen,  are 
broken  up  by  rapids  for  practically  their  whole  length. 

On  the  other  hand,  if  we  take  the  positive  value  of  the  river 
highways,  rather  than  their  actual  extent,  we  shall  see  that  they 
are  of  considerable  importance;  the  rivers  of  Guayana  and  of  the 
eastern  llanos  may  be  of  little  use  for  large  boats,  but  the 
Orinoco  forms  a  great,  central  artery,  from  which  roads,  and 
perhaps  eventually  railways,  can  diverge  to  the  limits  of  the 
basin.  Some  of  the  llano  tributaries,  too,  are  navigable  for 


72  School  of  Foreign  Service 

steamers,  and  thus  the  State  of  Apure  is  now  kept  in  communi- 
cation with  the  outside  world.  Then,  too,  there  is  the  great 
advantage  accruing  to  the  State  of  Zulia  from  its  central  lake, 
with  its  many  tributary  navigable  rivers,  along  which  large 
boats  can  travel  throughout  the  greater  part  of  the  State  and  on 
to  the  boundaries  of  those  of  the  Andes,  as  well  as  into  the  neigh- 
boring republic  of  Colombia.  Along  most  of  these  natural  and 
easily  utilized  lines  of  communication  there  are  already  services 
of  steamers,  nothing  very  advanced,  it  is  true,  but  still  a  begin- 
ning. 

The  most  important  of  the  accessible  regions  of  the  country 
are  the  great  plains  stretching  from  east  to  west  of  the  Orinoco 
and  Apure  rivers,  well  suited  to  cattle  raising,  the  rich  alluvial 
region  east  of  Lake  Maracaibo  and  the  rich  agricultural  region 
around  Lake  Valencia. 

Although  these  vast  plains  are  open  ranges  covered  with 
natural  grasses  for  cattle  feeding,  conditions,  in  general,  are  not 
those  prevailing  in  the  Argentine  Republic.  The  climate  is  much 
more  tropical;  tropical  diseases  are  prevalent,  and  the  river 
valleys  are  subject  to  overflow  in  times  of  high  water.  The 
higher  lands  farther  north  along  the  foot  hills  of  the  coast  range 
generally  lack  sufficient  water  during  the  dry  season  of  the  year, 
which  is  December  to  June.  Much  could  be  done  to  remedy 
this  by  the  introduction  of  water  through  modern  irrigational 
devices. 

The  future  of  Venezuela  depends  primarily  on  her  own  people, 
upon  whom  devolves  the  duty  of  developing  in  a  conscientious 
and  painstaking  manner  the  many  resources  of  their  country. 
It  is  certain  that  in  the  task  which  lies  before  them  they  will 
need  and  obtain  assistance  of  foreign  capital  and  advice,  and  in 
this,  if  American  enterprise  is  alive  to  a  great  opportunity,  we 
as  a  nation  should  bear  no  small  part. 

Edward  Fanning. 


Venezuela  Report  73 


AGRICULTURE  IN  VENEZUELA 

The  Agricultural  Zone  of  Venezuela  covers  about  300,000 
square  kilometers,  according  to  recent  statistics,  and  extends 
from  the  Atlantic  Ocean  to  Colombia,  embracing  the  territory 
between  the  Caribbean  seacoast  and  the  plains  of  the  Orinoco 
towards  the  south  of  the  country. 

Venezuela  has  fertile  soil,  perfect  adaptability  to  the  growth 
and  maturity  of  everything  that  is  essential  to  the  existence  of 
man  and  beast,  mild  climate,  with  temperatures  varying 
according  to  the  elevation  of  the  land  and  latitude,  and 
strategic  geographical  position.  These  favorable  conditions 
designate  Venezuela  as  one  of  the  most  attractive  and  advan- 
tageous regions  for  agricultural  pursuits.  Twenty  per  cent  of 
the  population  are  engaged  in  agricultural  work,  but  this  pro- 
portion is  far  from  being  sufficient  for  an  extensive  development 
of  the  natural  resources  of  this  vast  area.  It  is  estimated  that 
a  population  one  hundred  fold  greater  could  derive  a  comfortable 
subsistence  from  this  agricultural  region.  This  vast  area, 
including  such  a  great  number  of  square  kilometers,  should 
become  one  of  the  most  prosperous,  rich  and  accessible  agri- 
cultural fields  of  the  world  following  an  increase  in  population,' 
greater  and  improved  transportation  facilities,  and  with  the 
introduction  of  new  methods  of  cultivation  and  more  general 
application  of  modern  machinery. 

The^Jrincipal  agricultural  products  of  Venezuela  are:  coffee, 
cacao,'  sugar,  tobacco,  India-rubber,  tonka-beans,  cotton,  corn, 
vanilla,  wheat  and  kindred  products. 

The  vegetable  seeds  are  also  numerous  and  consist  of  vetches, 
bean  seed,  peas,  beans,  peanuts  and  okra. 

The  vegetable  plants  consist  of:  cabbage,  cauliflower, 
melons,  asparagus,  turnips,  radishes,  beets,  egg  plants,  garlic, 
pepper,  celery,  carrots,  cresses,  onions,  spinach,  lettuce  and 
artichokes. 

The  fruits  of  Venezuela,  of  which  there  are  many  different 
species,  include:  oranges,  large  sweet  lemons,  limes,  plantains, 
pineapples,  pomegranates,  figs,  grapes,  strawberries,  plums, 
breadfruit,  chestnuts,  mangoes,  zapotes,  parchas,  medlars, 


74  School  of  Foreign  Service 

tamarinds,  cactus  fruit,  mandarines,  and  a  great  variety  of 
bananas  of  a  very  high  quality.  There  is  a  vast  region  avail- 
able for  the  raising  of  bananas,  but,  up  to  the  present  no  use 
has  been  made  of  it  and  there  is  a  very  small  amount  of  capital 
invested  in  the  production  of  this  fruit  ($100,000  in  American 
gold). 

COFFEE 

The  cultivation  of  coffee  in  Venezuela  began  in  1784.  At  the 
present  time,  it  is  estimated  by  experts  that  there  are  about  260 
million  coffee  trees  under  cultivation,  which  place  Venezuela 
second  among  the  coffee  growing  countries,  according  to  recent 
statistics. 

Coffee  is  produced  in  the  temperate  climate  regions  of  the 
Republic  from  five  hundred  to  two  thousand  meters  above  sea 
level.  It  is  estimated  that  coffee  trees  last  from  forty  to  fifty 
years,  yielding  an  average  crop  of  one-eighth  of  a  kilogram  of 
coffee  beans  per  tree.  Sixteen  million  dollars  are  invested  in 
coffee  trees  in  Venezuela  at  the  present  time. 

CACAO. 

Venezuela  possesses  one  of  the  choicest  cacao  zones  of  the 
world.  The  natural  cacao  (Theobroma  edenda, — edible  food 
of  the  Gods)  is  a  seed  from  a  tree  indigenous  to  the  soil  of  Vene- 
zuela. From  this  seed  the  chocolate  of  commerce  is  made. 
As  the  cacao  tree  requires  for  full  development  and  good  crops  a 
temperature  of  80  degrees  Fahrenheit,  and  a  moist  air,  therefore 
the  Venezuelan  lands  along  the  coast  of  the  Caribbean  Sea, 
sloping  from  the  mountain  tops  to  the  shore,  and  which  are 
bedewed  by  the  exhalation  of  the  sea  and  irrigated  by  the  many 
rivers  coursing  down  the  valleys,  are  found  to  be  well  adapted 
in  all  respects  to  the  very  profitable  cultivation  of  cacao.  It  is, 
however,  also  found  and  cultivated  in  other  parts  of  Venezuela. 

About  two  hundred  trees  may  be  planted  in  one  hectare 
(about  two  and  one-half  acres)  and  they  must  be  protected 
from  the  sun  by  shade  trees  until  they  have  acquired  normal 
size.  Five  years  after  having  been  planted  the  trees  begin  to 
bear  two  crops  a  year,  ripening  in  June  and  December.  The 
average  life  of  a  tree  is  about  forty  years.  The  seed  is  similar 
to  a  shelled  almond;  about  sixteen  of  these  seeds  are  enclosed  in 


Venezuela  Report  75 

an  elongated  pod  ribbed  like  a  musk  melon.  The  pods  are  of  a 
yellow  and  red  color  and  when  they  become  ripe  turn  purple, 
On  being  gathered  and  heaped  in  piles  on  the  ground,  after  a 
few  days  they  ferment  and  burst;  then  the  seeds  are  shelled,, 
washed  and  housed. 

There  are  two  grades  of  cacao  grown  in  Venezuela,  namely, — 
the  criollo,  which  is  the  native  cacao,  and  the  trinitario,  which 
was  originally  imported  from  the  Island  of  Trinidad.  The 
criollo,  a  very  high  grade,  grows  especially  well  in  the  valleys 
situated  near  the  sea,  where  the  temperature  is  warm  and  moist, 
~  The  demand  for  this  product  in  Europe  before  the  war  was 
considerable  and  large  quantities  were  exported  annually.  In 
Spain  and  Italy  cacao  is  used  in  the  form  of  chocolate,  whereas 
in  France,  England  and  the  former  German  Empire,  it  is  chiefly 
used  in  the  manufacture  of  sweets  and  confections,  but  its  use 
is  becoming  so  varied  and  extensive  that  it  will  soon  be  a  staple 
article  of  consumption  as  universally  needed  as  coffee  or  tea. 
Venezuelan  cacao  also  finds  a  ready  market  in  the  United 
States  where  it  is  known  as  Caracas  and  Maracaibo  Cacao. 

As  the  cacao-yielding  region  in  the  world  is  comparatively 
restricted,  the  planters  of  this  staple  need  not  fear  the  increasing 
competition  which  has  been  met  in  the  cultivation  of  other 
staple  products.  At  the  present  time  it  is  estimated  that  $12,- 
400,000  are  invested  in  the  cultivation  of  cacao  in  Venezuela. 


r 


TOBACCO 


Tobacco,  discovered  by  the  Spaniards  in  Yucatan,  was  intro- 
duced from  there  to  the  West  Indies  and  thence  transplanted  to 
Venezuela,  where  it  is  most  successfully  cultivated  in  Capadare, 
Yaritagua,  Merida,  Cumanacoa,  Guanape,  Guaribe  and 
Barinas.  Excellent  tobacco  is  grown  near  Cumana,  that  from 
Guacharo  being  considered  exceptionally  good.  The  plant 
thrives  best  in  humid  and  fertile  soil.  Cultivation  requires 
about  six  months  in  Venezuela  before  it  is  ready  for  the  market, 
and  while  the  cost  of  cultivation  is  not  large,  great  care  is 
required. 

Some  tobacco  is  exported  from  Venezuela,  chiefly  to  Havana> 
where  it  is  mixed  in  the  manufacture  of  Havana  cigarettes. 

The  different  classes  of  tobacco  grown  in  Venezuela  are  dis- 


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tinguished  according  to  the  regions  where  they  are  produced. 
These  regions  are 


Maturin: 

This  grade  of  tobacco  is  produced  chiefly  in  Venezuela  and  is 
used  in  the  manufacture  of  Venezuelan  cigarettes.  It  is  one 
of  the  better  known  classes  of  tobacco  entering  foreign  trade. 
This  class  of  tobacco  has: 

1.  Leaves  which  are  light  with  relation  to  their  bulk. 

2.  Medium  strength,  agreeable  aroma. 

3.  It  will  keep  in  good  condition  for  a  maximum  of  two  years 
but  then  begins  to  rot  and  completely  loses  its  strength. 

Capadare: 

This  class  of  tobacco  is  considered  to  be  better  than  the 
Maturin  tobacco.  It  maintains  its  strength  and  does  not  rot 
until  three  or  more  years  after  it  has  been  gathered.  It  has  a 
very  agreeable  taste  and  its  weight  as  compared  with  its  bulk 
is  greater  than  that  of  the  Maturin  tobacco  and  does  not  burn 
as  fast  as  the  latter.  It  is  classified  into  first  and  second  class 
tobacco  by  the  gatherers. 

Salon: 

On  account  of  the  very  fine  leaves  and  aroma  which  this 
tobacco  possesses  it  is  used  as  the  outer  leaf  in  making  fine  cigars. 
It  burns  well,  is  light  in  relation  to  its  bulk  and  is  classed  by  the 
gatherers  as  Cover,  Inner-cover  and  Core  tobacco. 

Golfero: 

This  region  is  on  the  shores  of  the  Gulf  of  Cariaco  and  has 
recently  been  planted  with  Havana  tobacco  seeds  and  is  now 
producing  a  superior  quality.  It  has  strength,  aroma  of  a  fine 
quality  and  burns  very  well.  It  lasts  about  two  years  without 
rotting  and  on  account  of  its  steady  strength  and  agreeable 
aroma,  it  is  very  much  demanded  by  the  manufacturers  of  ciga- 
rettes. It  is  divided  into  Principal,  Half-tree  and  Sprouts. 

Guaribe: 

This  tobacco  is  rather  strong,  has  an  agreeable  taste  and  aroma 
but  as  a  general  rule  does  not  burn  well.  It  is  used  in  the  manu- 
facture of  cigarettes,  in  small  proportions,  in  order  to  give 
strength.  It  is  also  divided  into  Principal,  Half-tree  and 
Sprouts. 


Venezuela  Report  77 

Cocorote: 

This  tobacco  is  mostly  used  in  the  manufacture  of  cigarettes. 
It  has  a  delicate  leaf,  is  light  in  weight,  has  considerable  strength 
and  good  taste.  It  is  classified  as  Cover,  Inner-cover  and  Core 
tobacco. 

Guacharo: 

This  tobacco  is  produced  near  the  Gulf  of  Cariaco  in  the 
vicinity  of  the  Guacharo  Caves.  It  has  an  exceptional  and 
superior  strength,  a  better  taste  and  finer  aroma  than  any  other 
tobacco,  not  only  of  Venezuela  but  of  any  place  in  the  world 
where  tobacco  is  cultivated.  There  is  only  a  small  supply  of 
this  kind  of  tobacco  because  it  will  not  grow  in  any  other  region 
on  account  of  the  very  mature  strata  formation.  The  leaf  is 
small  and  delicate;  there  is  consequently  a  great  demand  for  it 
from  the  cigar  manufacturers.  Cigarette  manufacturers  can 
not  make  use  of  it  because  the  quantity  produced  is  too  small. 

PRODUCTION   OF  TOBACCO 

The  annual  production  of  the  different  classes  of  tobacco  in 
Venezuela  varies  a  great  deal  according  to  the  conditions  of  the 
season  and  the  demand  for  the  product.  The  approximate 
output  between  the  years  1914-1919  was  estimated  at  more 
than  3,000  tons  from  the  different  regions.  The  average  pro- 
duction above  referred  to  is  liable  to  increase  to  a  considerable 
extent  provided  the  demand  requires  it,  as  soil  fit  for  tobacco 
cultivation  is  plentiful.  The  price  of  tobacco  naturally  varies 
with  the  supply  and  demand  and  an  increase  of  exports  of 
tobacgo  contemplated  in  the  near  future  will  tend  to  increase 
the  prices.  The  total  value  of  tobacco  exported  from  Vene- 
zuela in  1917  amounted  to  more  than  $50,000;  in  1918(?)  the 
exportation  amounted  to  more  than  $800,000. 

The  total  amount  of  capital  invested  in  Venezuela  in  the 
cultivation  of  the  tobacco  plant  is  estimated  at  $2,000,000. 

INDIA    RUBBER 

Rubber,  which  was  discovered  in  French  Guiana  in  1758,  is 
called  "caucho"  or  "goma  elastica,"  in  Venezuela.  The 
rubber  produced  in  the  Orinoco,  Cassiquiare  and  Rio  Negro 
sections  of  Venezuela  comes  from  forests  of  Heveas.  There 
are  other  species  of  rubber  trees  but  their  sap  is  less  elastic  and 


78  School  of  Foreign  Service 

much  thicker.  The  tree  is  found  in  plentiful  quantities  through- 
out the  Guiana  section  and  the  Andes  Range,  and  in  some  States 
of  the  East,  West  and  South  of  Venezuela.  More  than  twenty 
tribes  of  Indians  inhabiting  the  Amazon  territory  of  Venezuela 
gather  rubber  and  prepare  it,  but,  as  a  general  rule,  in  a  very 
primitive  manner. 

In  the  Orinoco  region  the  Hevea  tree  produces  from  40  to  50 
grams  of  juice;  in  that  of  the  Rio  Negro  from  80  to  100  grams 
and  in  that  of  the  Cassiquiare  from  125  to  150  grams  per  tree. 

Due  to  the  fact  that  this  product  as  well  as  many  others  of  the 
country  are  gathered  within  the  vast  territory  bordering  on 
Brazil,  they  are  exported  through  the  Brazilian  port  of  Para  and 
reach  American  and  European  markets  as  of  Brazilian  origin. 

Rubber  trees  when  cultivated  in  a  scientific  manner  yield  an 
average  of  95%  of  pure  rubber,  each  tree  producing  about  460 
grams  of  juice. 

The  exploitation  of  rubber  in  Venezuela  may  be  considered 
as  limited  entirely  to  the  gathering  of  the  natural  product  on  a 
small  scale,  as  the  many  million  acres  producing  rubber  would 
require  several  million  people  to  exploit  them.  The  investment 
of  capital  on  a  large  scale  is  required  to  develop  this  important 
industry.  First  and  most  important,  labor  must  be  induced  to 
come  to  Venezuela  in  order  to  develop  this  immense  natural 
resource  now  scarcely  touched.  The  world  demand  for  this 
product  is  great  and  rubber  would  undoubtedly  be  a  profitable 
investment  for  American  investors  if  undertaken  in  a  systematic 
and  technical  way.  It  is  estimated  that  not  more  than  $1,200,- 
000  are  invested  in  the  rubber  industry  in  Venezuela. 

SUGAR  CANE 

Sugar  cane  is  indigenous  in  Venezuela  and  cultivated  with 
good  results.  Lately,  Sugar  Cane  Central  Factories  have  been 
established  to  manufacture  the  products  of  the  sugar  cane. 
These  plants  equipped  with  the  best  modern  improvements  as 
to  buildings  and  machinery  have  at  their  disposal  sufficient  capi- 
tal to  enable  them  not  only  to  supply  the  home  consumption 
but  to  export^their  products  in  considerable  quantity. 

The  climate  and  the  fertile  soil  of  Venezuela  are  the  principal 
factors  in  the  production  of  sugar  cane,  as  it  grows  everywhere 
In  Venezuela  except  in  mountainous  parts  lacking  irrigation. 


Venezuela  Report  79 

Four  species  of  sugar  cane  are  cultivated  in  Venezuela, 
namely:  Criolla,  the  Otati,  the  Batavian  and  the  Salangore. 

The  Criolla  is  cultivated  to  the  largest  extent  on  account 
of  its  sweetness  and  good  results. 

The  planting  and  cutting  of  the  sugar  cane  is  controlled  in 
such  a  manner  that  there  is  always  in  the  plantations  sufficient 
cane  reaped  and  ready,  in  order  to  avoid  interruptions  in  the 
grinding  during  the  whole  year  round.  To  ensure  this  con- 
tinuity of  crops,  the  soil  must  be  kept  well  irrigated  at  all  times. 

The  region  near  the  Lake  of  Valencia  produces  longer  and 
thicker  canes  having  more  juice,  but  they  contain  less  sweetness. 

Sugar  plantations  are  usually  divided  into  Tablones  covering 
ninety  meters  square,  each  lot  separated  by  a  road.  Such  lots, 
when  well  manured,  irrigated  and  sown  with  sugar  cane,  pro- 
duce sixty  to  eighty  loads  of  "papelon"  (brown  sugar),  or  160 
loads  of  alcohol:  that  is,  5,120  cones  of  brown  sugar  weighing 
8,129  kilograms  or  9,600  liters  of  alcohol.  Every  plantation  of 
any  importance  has  a  special  building  with  the  necessary 
machinery  and  equipment  for  manufacturing  the  different 
sugar  products.  These  are:  sugar,  brown  sugar,  alcohol  and 


rum. 


Brown  sugar  is  offered  for  sale  molded  in  different  forms  such 
as  cones  and  squares.  The  best  quality  of  sugar  produced  in 
Venezuela  is  manufactured  near  Guatire,  a  town  three  hours 
distance  from  Caracas  by  motor  truck  or  automobile.  Rum  is 
manufactured  from  sugar  cane  and  alcohol.  The  previously 
mentioned  Sugar  Central  Factories  command  an  aggregate 
capital  of  $7,700,000,  have  a  total  of  12,800  hectares  of  sugar 
cane  under  cultivation  and  can  produce  2,600  metric  tons  of 
sugar  per  day.  This  product  at  present  commands  a  high  price 
abroad;  therefore,  with  proper  management  these  plants  now 
offer  a  Venezuelan'  product  for  exportation  in  large  quantities 
and  of  a  very  fine  quality,  and  for  which  without  much  difficulty 
they  should  be  able  to  establish  a  wide  market. 

As  far  back  as  1913  there  existed  600  individuals  and  com- 
panies devoted  to  the  cultivation  of  sugar  cane,  with  an  aggre- 
gate total  capital  of  more  than  $10,600,000  invested  in  this 
industry. 


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WHEAT 


This  product  was  introduced  into  Venezuela  by  the  Spaniarc 
at  the  beginning  of  the  conquest  and  was  cultivated  in  Aragua, 
Barquisimeto,  Trujillo,  Merida  and  the  Tachira.  The  high 
table  lands  and  valleys  in  the  mountainous  regions  of  Western 
Venezuela  are  available  for  cultivation  of  wheat.  Fine  crops 
of  this  grain  are  now  raised,  which,  after  being  made  into  bread, 
is  the  chief  breadstuff  of  all  classes  of  the  country. 

In  the  Republic  of  Colombia  wheat  is  cultivated  on  a  large 
scale  with  good  results  both  in  cold,  temperate  and  hot  zones. 
Venezuela  has  similar  zones,  therefore  by  sowing  the  proper 
kind  of  grain  in  each  zone  as  practiced  in  Colombia  and  by 
adopting  the  same  or  similar  systems  of  cultivation  as  are  there 
used,  wheat  could  easily  be  raised  in  Venezuela  not  only  for 
home  consumption,  but  for  export. 

COTTON 

Cotton,  although  a  natural  product  of  Venezuela,  was  not 
cultivated  until  1782.  Its  output  became  important  during  the 
Civil  War  of  the  United  States,  but  after  that  event  and  the 
subsequent  great  decline  in  prices  of  this  staple  product,  the 
industry  was  gradually  abandoned.  The  cotton  tree  attains 
the  height  of  a  shrub  and  under  usual  cultivation  produces  in 
Venezuela  more  than  in  the  United  States.  At  the  beginning  of 
1800  the  average  exportation  of  cotton  was  450,000  kilograms  a 
year.  In  1850  the  export  of  cotton  was  of  300,000  kilograms 
and  in  1888  of  57,000  kilograms.  In  1913,  267,300  kilograms  of 
cotton  with  a  commercial  value  of  $72,120  were  exported. 

Cotton  grows  in  nearly  the  whole  territory  of  Venezuela,  but 
the  best  results  have  been  obtained  in  the  States  of  Aragua  and 
Carabobo,  which  produce  54%  of  the  total  Venezuelan  crop. 

The  farmers  sow  cotton  when  they  plant  corn  or  beans  during 
the  month  of  July  and  the  crop  of  cotton  begins  to  be  gathered 
at  the  end  of  the  month  of  November  or  the  beginning  of 
December.  This  depends  upon  the  time  when  rains  permit  the 
sowing.  The  crops  of  corn  or  beans  pay  the  expense  of  the  whole 
cultivation  of  the  cotton  and  the  only  outlay  in  the  raising  of 
cotton  is  the  gathering.  It  is  estimated  that  the  production  of 
cotton  in  Venezuela  in  normal  times,  excepting  droughts, 
locusts,  etc.,  amounts  to  7,000,000  kilograms  in  the  seed.  There 


Venezuela  Report  81 

is  an  average  of  28.5%  cotton  in  the  seed,  therefore,  1,995,000 
kilograms  of  seeded  cotton  are  produced.  The  cotton  seeds 
which  were  sown  in  the  month  of  June,  1918,  began  to  give  a 
crop  in  the  month  of  December  of  the  same  year,  and  the 
gathering  of  said  crop  ended  in  the  month  of  March,  1919.  It 
has  been  estimated  that  this  crop  produced  a  total  of  1,995,000 
kilograms  of  seeded  cotton  grown  in  the  various  states  of  the 
Venezuelan  Federal  Union. 

The  price  of  cotton  in  Venezuela  during  the  last  eight  years 
(1911-1919)  has  fluctuated  between  Bolivars  70  to  150  per  46 
kilograms.  The  last  price  of  1 50  Bs.  per  46  kilograms  was  the  one 
paid  at  the  end  of  the  1919  crop,  due  to  the  high  price  of  cotton 
in  the  United  States,  the  country  producing  the  greatest  amount 
of  cotton  in  the  world. 

Since  Venezuela  produced  in  1919  a  total  of  1,995,000  kilo- 
grams of  seeded  cotton  which  were  sold  at  an  average  of  3.25 
Bs.  per  kilogram^  the  total  value  of  the  Venezuelan  cotton  crop 
amounted  to  Bs\  6,483,750  ($1,296,750  American  gold). 

Venezuelan  cotton  is  classified  as  Cotton  No.  2.  (Egypt  pro- 
duces cotton  No.  1.)  Due  to  the  difference  in  seeds,  soil,  culti- 
vation on  a  small  scale,  etc.,  Venezuelan  cotton  is  mixed  in  such 
a  manner  that  a  standard  quality  of  uniform  length  of  fibre  is 
not  obtainable  in  a  given  lot.  For  this  reason  the  price  of  Vene- 
zuelan cotton  is  always  somewhat  less  than  that  of  the  medium 
class  cotton  from  the  United  States. 

The  State  of  Zulia  produces  the  best  quality  of  Venezuelan 
cotton,  due  to  the  length  of  its  fibre  and  because  it  is  more 
advantageous  when  manufactured,  but  as  the  cloth  industry 
in  Venezuela  is  not  intensive  enough  to  warrant  the  classifica- 
tion of  fibres,  this  advantage  is  not  noticeable  in  the  aggregate 
cotton  trade  of  Venezuela.  The  cotton  plant  gives  but  one  crop 
a  year  and  requires  to  be  replanted  every  year.  At  the  present 
time  it  is  estimated  that  $200,000  are  invested  in  the  cultivation 
of  this  product. 

TONKA    BEANS 

These  beans,  which  are  exported  from  Venezuela  on  a  large 
scale,  have  the  shape  of  a  large  black  almond  and  give  out  a 
delicious  perfume.  When  dry  their  peculiar  perfume  develops 
still  more  and  it  is  used  as  an  odorous  basis  to  make  high  grade 


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perfumes,  and  to  flavor  tobacco.  The  bean  is  a  natural  product 
and  needs  no  cultivation,  as  a  general  rule;  it  is  gathered  in  the 
Tonka  forests  existing  in  the  Amazon  territory  and  the  District 
of  Cedeno,  in  the  Venezuelan  Guianas.  Tonka  beans  are  a 
staple  of  great  value  in  the  regions  watered  by  the  Orinoco 
River  and  its  tributaries,  and  almost  the  entire  crop  of  Vene- 
zuelan Tonka  beans  are  exported  by  the  way  of  Ciudad  Bolivar. 
The  gathering  process  formerly  in  use  brought  about  the 
destruction  of  the  trees,  but  the  Venezuelan  Government  has 
taken  the  necessary  measures  to  prevent  the  trees  from  being 
felled  as  was  formerly  the  case.  The  large  trees  now  in  existence 
are  being  protected  perfectly.  In  the  year  1913  Venezuela 
exported  more  than  half  a  million  kilograms  of  tonka  beans 
having  a  commercial  value  of  $727,800.  One  or  several  well 
organized  companies  with  the  necessary  capital  at  their  com- 
mand would  derive  great  profit  from  such  exploitation.1 

VANILLA 

Venezuela  produces  an  uncultivated  vanilla  plant  called 
"vanilla  lutescens^  but  that  commonly  known  to  commerce 
is  the  more  aromatic  kind  called  "vanilla  plantifola."  The 
cultivation  of  this  product  has  not  been  fostered  to  any  great 
extent.  It  grows  readily  in  the  rich  soil  of  the  States  of  Falcon, 
Lara,  Bolivar,  Anzoatequi  and  Zamora.  No  official  figures  are 
available  as  to  the  production,  cultivation  or  export  of  this 
product,  although  there  is  a  good  opportunity  for  further  devel- 
opment. 

COCOANUTS 

There  are  many  cocoanut  tree  plantations  in  Venezuela, 
chiefly  in  the  regions  of  Zulia,  Carabobo,  Bolivar,  Barcelona  and 
Cumana.  Cocoanuts  are  used  for  various  reasons  abroad  and 
in  the  United  States,  therefore  the  cultivation  of  this  natural 
product  could  be  fostered  so  as  to  make  it  an  article  of  export 
on  a  large  scale  and  it  would  become  a  profitable  investment  not 
requiring  a  large  capital.  In  1913  there  were  invested  in  Vene- 
zuela in  the  cultivation  of  cocoanut  trees  $1,095,200. 


Agricultural  Year  Book  of  Venezuela,  1913. 


Venezuela  Report  83 

INDIAN   CORN 

This  product  is  successfully  cultivated  in  all  the  States  of 
Venezuela  where  it  grows  in  every  kind  of  soil,  from  the  level  of 
the  sea  to  2,800  meters  above  it.  It  thrives  best,  however,  at  an 
altitude  of  500  to  1,000  meters.  There  are  about  73,131  acres 
in  Venezuela  devoted  to  the  production  of  corn,  and  the  total 
amount  raised  is  estimated  at  150,000  metric  tons.  Special 
attention  has  lately  been  paid  to  the  cultivation  of  corn,  which 
is  the  real  breadplant  in  Venezuela,  especially  in  the  interior  of 
the  country,  and  a  considerable  quantity  of  Indian  corn  has 
been  exported. 

BEANS 

Beans  are  also  successfully  grown  in  all  the  States  of  Vene- 
zuela and  a  great  variety  of  them  are  produced.  Those  having 
the  greatest  deman^f  are  the  "black  beans."  Their  production 
not  only  meets  the  domestic  demand  but  they  have  been  lately 
exported  in  considerable  quantities.  They  grow  readily  at  all 
times  of  the  year  and  are  one  of  the  principal  articles  of  domes- 
tic commerce  in  Venezuela. 

INDIGO 

This  product  was  introduced  into  Venezuela  in  1777  and 
planted  near  La  Victoria  and  later  in  many  other  places.  The 
best  quality  was  produced  at  San  Sebastian.  Due  to  the  high 
price  attained  by  coffee  many  years  ago,  the  cultivation  of  indigo 
was  abandoned.  In  1902  the  exportation  of  indigo  amounted 
to  1,876,510  pounds  having  a  value  of  $2,450,000. 

This  product  has  now  sufficient  demand  in  foreign  markets 
to  warrant  the  revival  of  its  cultivation  as  a  remunerative 
exportable  commodity  of  Venezuela. 


During  the  year  1917-1918  the  products  exported  from  the 
agricultural  zone  of  Venezuela  amounted  to  $10,400,000;  in 
this  zone  there  is  now  invested  $46,600,000.  A  presidential 
decree  of  March  12,  1917,  created  an  experiment  station  of 
agriculture,  live  stock,  and  forestry  with  a  garden  of  acclima- 
tization to  be  located  at  Cotiza  near  Caracas.  Its  purposes 
were  stated  to  be: 


84 


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The  study  of  improved  methods  of  cultivating  the  agricultural 
products  of  the  country;  the  introduction,  selection  and  dis- 
tribution of  seeds;  experiments  in  reforestation;  preparation  of 
reports  upon  nature  of  soil  and  most  adaptable  crops  from  each 
region,  with  practical  work  for  the  training  of  agricultural  fore- 
men and  forest  rangers.1 

Other  purposes  are: 

To  maintain  circulating  agrarian  libraries,  to  promote  expo- 
sitions, to  form  nurseries  of  exotic  plants,  to  introduce  new 
agricultural  machinery  and  implements,  and  to  supply  all 
possible  information  and  assistance  to  the  country. 

In  the  following  table  the  amount  of  capital  invested  in  Venezuela  in  the 
cultivation  of  its  eight  principal  agricultural  products  is  shown.2 

Coffee  trees $16,000,000 

Cacao 13,000,000 

Balata  and  rubber 2,000,000 

Cocoanut  trees 2,000,000 

Tobacco 2,000,000 

Bananas 500,000 

Cotton 400,000 

Sugar  cane 1 1,500,000 

Total $47,400,000 

The  following  table  shows  the  principal  products  exported  from  the  Agri- 
cultural Zone  of  Venezuela  from  1917-1918, — weight  in  Kilograms  and  values 
in  Bolivares.8 


Products.  Weight  in  kilograms. 

1.  Cotton 3,067 

2.  Starch 248,801 

3.  Sugar. 13,260,562 

4.  Cacao 20,280,865 

5.  Coffee 34,123,145 

6.  Bananas 377,636 

7.  Indian  Corn 21,360,191 

8.  Brown  sugar 5,440,551 

9.  Tobacco....          297,579 


Value  in  Bolivares. 

4,930 

104,307 

5,526,798 

10,603,372 

29,190,622 

58,205 

4,878,173 

1,427,161 

324,436 


Total 95,392,397 


B.  52,118,004 


1Memoria  del  Ministerio  de  Fomento,  1918. 
•Informe  del  Ministerio  de  Fomento,  1919,  p.  44. 
'Informe  del  Ministerio  de  Fomento,  1919. 


Venezuela  Report  85 

THE  FOREST  ZONE  OF  VENEZUELA. 

This  vast  region  extends  from  the  Gulf  of  Maracaibo  over  the 
mountains  of  Yaracuy,  San  Felipe,  Aroa,  Tucacas,  San  Camilo, 
Guayana  and  its  territories,  and  from  the  untouched  forest  of 
the  Trujillo  and  Barquisimeto  mountains  to  the  fertile  wood- 
lands of  the  State  of  Zamora. 

The  Forest  Zone  of  Venezuela  comprises  about  half  of  its 
territory;  of  this  half,  98%  is  still  virgin  land,  a  fact  which  may 
be  regarded  as  one  of  the  principal  hopes  for  the  progressive 
future  of  the  country.  The  Zone  has  an  area  of  795,640  square 
kilometers,  from  which  over  two  thousand  specimens  were 
exhibited  in  Caracas  at  one  time.  From  this  immense  region 
Venezuela  can  derive  natural  resources  of  unlimited  wealth, 
when  sufficient  labor  and  capital  are  available,  better  means  of 
transportation  established,  and  more  modern  machinery  and 
implements  introduced. 

The  following  figures  show  the  division  of  the  Forest  Zone  of  Venezuela: 

Public  Forest  Lands 295,400  sq.  kilometers 

'Private      "        "    125,000       " 

The  Forest  Zone  of  Venezuela  comes  within  the  forest  area 
of  South  America.  Richest  in  quantity,  and,  probably  in  vari- 
ety of  vegetable  life,  is  the  well-known  land  of  Guayana,  with 
its  vast  forests,  hot  climate  and  heavy  rainfall.  Within  this 
area  the  plants  range  from  the  alpine  shrubs  and  reindeer  moss 
found  on  some  of  the  higher  plateaux  and  hills  to  the  bamboos 
and  orchids  of  the  river  banks.  The  high  timber  trees  grow 
fairly  close  together,  and  their  spreading  tops  fifty,  eighty,  or 
one  hundred  feet  from  the  ground,  with  the  abundant  hanging 
manes  and  flowering  creepers,  keep  all  but  a  feeble  light  from 
the  ground;  hence  it  comes  that  the  undergrowth  is  usually 
sparse  or  absent,  and  progress  on  foot  is  comparatively  easy. 

Of  all  the  forest  giants  of  Guayana,  " Schomburgk"  is  consid- 
ered the  most  magnificent;  the  average  diameter  of  the  trunk 
is  about  three  feet,  and  it  seldom  branches  at  less  than  forty 
feet  from  the  ground.  Its  wood,  dark  red  and  fine  grained,  is 
said  to  be  excellent  for  shipbuilding  purposes. 

Caoba,  whose  wood  is  very  like  mahogany  in  color,  and  a  cer- 
tain big  tree  called  "rosewood,"  which  it  resembles,  are  notable 

llnforme  del  Ministerio  de  Fomento,  1919,  p.  27. 


86  School  of  Foreign  Service 

among  the  timber  trees.  The  huge  Ceibas  have  a  soft,  easily 
worked  wood,  excellent  for  the  dugout  canoes  of  the  Indians. 
The  equally  large  Mucurutu  or  cannon-ball  tree  furnishes  a 
beautiful  but  hard  grained  timber. 

Two  fruit  trees  whose  products  are  well  known  throughout 
Europe  grow  in  the  regions  of  Guayana,  the  Brazil  nut  and 
tonka  bean  trees. 

The  gums  and  resins  of  Guayana  include  the  balata,  copaiba- 
balsam,  and  rubber-producing  trees,  the  latter  chiefly  varieties 
of  hevea,  while  cinchona  or  quinine,  with  innumerable  creepers 
and  trees  possessed  of  medicinal  or  toxic  properties  are  found 
on  all  sides.  There  are  more  than  2,450  known  species  of  plants 
to  be  found  in  the  Forest  Zone  and  more  are  being  added  to  the 
list  daily;  it  is  probable  that  in  such  an  assembly  there  must  be 
many  of  value  as  yet  undiscovered  and  unused. 

The  forest  plants  and  trees  of  Guayana  also  flourish  in  the 
Delta  Region  and  in  the  forests  bordering  the  Llanos  of  Maturin, 
but  the  vegetation  of  Northern  Venezuela  is  generally  different 
from  that  of  the  South.  The  great  brown  plain  of  the  Llanos 
is  beautified  by  small  golden,  white,  and  pink  flowers,  while 
sedges  and  irises  make  up  much  of  the  small  vegetation.  The 
banks  of  the  rivers  often  support  denser  groves  of  ceibas,  crofons, 
guamos,  etc.,  and  along  the  banks  in  front  of  the  trees  are  masses 
of  reeds  and  semi-aquatic  grasses. 

In  the  region  of  the  Cordilleras  many  different  types  of  vege- 
tation can  be  found  in  the  various  zones.  The  very  hot  section 
has  generally  a  heavy  rainfall  and  supports  thick  forests,  but 
along  the  sea  coast  there  are  barren  stretches  with  only  cactus, 
acacia,  croton,  and  similar  plants.  In  this  region  we  have  the 
plantations  of  cacao,  sugar,  bananas,  plantains,  maize  and  cas- 
sava, which  are  the  staple  foods  of  the  inhabitants.  The  growth 
of  cocoanuts  is  also  encouraged.  In  addition,  there  are  many 
products  of  the  forests,  chief  of  which  are  the  dyewoods,  and 
tanning  barks,  including  logwood,  dividive,  mangrove,  indigo, 
and  many  others.  There  is  also  a  great  deal  of  valuable  timber 
in  this  region,  the  chief  woods  exported  being  mahogany  and 
cedar. 

In  the  cooler  regions  we  find  a  mixture  of  hot  country  plants 
and  those  of  the  mountains.  One  may  see  in  the  same  valley, 
within  a  short  distance  of  one  another,  bananas,  potatoes,  sugar 


Venezuela  Report  87 

cane,  wheat,  yuca  or  cassava,  peas,  maize,  cotton,  cocoa  and 
coffee,  all  flourishing,  and  a  single  orchard  may  contain  guavas 
and  apples,  peaches  and  oranges,  and  a  variety  of  other  fruits; 
the  garden  adjoining  will  have  a  mixture  of  roses,  carnations, 
violets  and  dahlias  and  many  tropical  flowers.  Strawberries, 
mint,  nasturtiums  and  other  of  our  garden  plants  have  been 
successfully  grown  in  these  mountain  regions  within  10  degrees 
of  the  equator. 

The  higher  part  of  this  region  exhibits  a  great  variety  of 
plants  peculiar  to  this  zone.  Along  the  mountain  roads  can  be 
seen  palms,  screw-pines,  and  beautiful  tree  ferns,  also  cran- 
berries, blackberries,  ivy,  quinine-trees,  small  bamboos,  silver- 
ferns,  and  many  other  beautiful  plants  and  shrubs.  In  short, 
here  can  be  seen  the  greatest  variety  of  color  and  floral  scenery. 

In  the  cold  region  of  the  Cordilleras  the  small  woods  of  the 
temperate  zone  gradually  die  out,  and  toward  the  snow  line  we 
have  the  alpine  grasses,  heaths,  and  thick  leaved,  aloe-shaped 
plants  which  have  lumps  of  resin  clinging  to  their  roots,  and 
seem  to  take  the  place  of  pines,  which  are  not  found  in  Vene- 
zuela. 

The  value  of  the  products  of  the  Forest  Zone  of  Venezuela 
exported  during  1917-1918  was  more  than  31,800,000.  The 
capital  invested  in  the  cultivation  of  this  zone  amounts  to  more 
than  $2,000,000. 

Matthew  J.  Heiler. 


THE  CATTLE  INDUSTRY  IN  VENEZUELA 

This  report  is  based  chiefly  on  conferences  and  trips  with  Dr.  Martinez 
Mendoza,  Director  of  the  Agricultural  Experimental  Station,  and  on  notes 
which  he  very  kindly  furnished.  The  following  references  have  also  been  con- 
sulted: 

"Venezuela."     Handbook  prepared  by  Dr.  N.  Veloz  Goiticoa  for  the 

Ministerio  de  Fomento. 
The  Annual  Reports  of  the  United  States  Consul  at  La  Guaira,  for  1916 

and  1918. 

"Venezuela"  by  L.  V.  Dalton,  1918. 
The  article  on  "Venezuela"  in  the  Encyclopedia  Britannica  has  been 

consulted. 

Venezuela  has  an  area  of  approximately  393,976  square  miles 


88  School  of  Foreign  Service 

and  a  population  of  over  2,848,1 21. x  From  these  figures  one 
may  see  that  the  country  is  very  sparsely  settled,  and  that  the 
first  requisite  of  a  cattle  country  is  met, — that  of  plenty  of  open 
land. 

The  main  occupation  of  the  people  is  agriculture.  Stock- 
raising  is  next  in  importance  and  promises  soon  to  be  the  leading 
industry  of  the  country.  Yet,  even  though  the  industry  is  now 
important,  it  is  developed  to  such  a  slight  extent,  in  view  of  its 
possibilities,  that  the  past  history  means  little  and  statistics 
mean  but  little  more.  The  wars  for  independence,  internal 
strife,  political  unrest  and  a  certain  lassitude  on  the  part  of  the 
people  have  greatly  hindered  the  development  of  the  industry 
in  the  past. 

There  exist  no  authentic  source  material  or  statistics  covering 
the  cattle  industry  in  Venezuela.  Only  during  the  last  few 
years  has  the  Government  succeeded  in  convincing  cattle 
raisers  of  the  importance  of  accurate  statistics  and  led  the  way 
itself  by  beginning  systematically  to  compile  them. 

The  following  statistics  are,  consequently,  approximations  and 
consist  for  the  most  part  of  rough  estimates.  They  were 
obtained  from  the  1919  booklet  of  N.  Veloz  Goiticoa  and  were 
officially  edited  by  the  "  Department  of  Fomento"  and  are, 
consequently,  the  most  nearly  correct  and  authentic  which  could 
be  obtained  and  also  the  most  complete. 

Still,  as  stated  before,  it  is  not  the  past  in  which  we  are  inter- 
ested, so  much  as  the  future,  and  hence  we  shall  merely  quote  the 
available  figures  and  then  dismiss  them  from  further  considera- 
tion. 

Number  of  Cattle  in  Venezuela. 

1804 1,200,000  1864 5,800,000 

1812 4,500,000  1873 3,302,670 

1823 256,000  1883. 8,591,860 

1833 2,437,150  1894 6,345,560 

1839 4,617,560  1899 6,059,480 

1847 5,503,000 

In  1919  it  was  estimated  that  there  were  only  2,600,000  head 
of  horned  cattle  within  the  country. 

The  figures  of  1915-16  for  live-stock  show: 

Horses...  191,000  Sheep 177,000 

Goats 1,700,000  Cattle 2,000,000 

figures  of  1917.     Latest  census  is  expected  to  show  some  increase. 


Venezuela  Report  89 

Live-Stock  on  the  Hoof  Exported  From  Venezuela  from  1831  to  1918. 

1831 1,825 

1847 15,976 

1852 13,316 

1882 5,929 

1898 24,000 

1901 60,000 

1903....... 60,000 

1904 60,000        Wt.  in  Kilograms.         Value  in  Dollars. 

1915 18,339                 5,415,000                    259,800 

1916 18,267                 5,115,000                    246,000 

1917 18,333                 5,195,000                    325,000 

1918 19,020                 5,343,000                    308,000 

Exports  of  Frozen  Meat  from  1915  to  1918. 
Years.  Carcasses.      Wt.  in  Kilograms.      Value  in  Dollars. 

1915. 17,847  2,197,240  196,663 

1916....... 18,267  3,315,990  334,216 

1917 18,335  4,978,420  398,273 

1918... 5,867,770  467,867 

In  1917-18  the  exports  of  the  "Pastoral  Zone"  were: 

Products.  Value  in  Dollars. 

Salted  meat 3,398 

Frozen  meat 467,867 

Animal  hair 100 

Horns 1,788 

Skins 1,673,230 

Frozen  residue  of  horned  cattle 10,982 

Horses,  sheep,  goats,  pigs 24,539 

Horned  cattle 308,188 

Wool 155 

Soles 67,442 


Total 2,657,689 

In  1919  it  was  estimated  that  $20,000,000  were  invested  in 
•stock-raising  and  pastures.  Since  that  time  there  has  been  a 
great  increase  and  it  is  safe  to  estimate  that  now  the  sum  is 
.nearer  $30,000,000. 

Topographically  Venezuela  may  be  divided  into  three  regions: 

1 .  The  mountain  area  of  the  north  and  northwest. 

2.  The  Orinoco  Basin,  with  its  spacious  "llanos"  (plains). 

3.  The  Guiana  Highlands. 

It  is  the  second  region,  called  "The  Pastoral  Zone,"  in  which 


90 


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we  are  most  interested.  The  other  two  concern  us  only  in  two 
respects:  as  a  source  of  water  supply,  and  as  a  hindrance  to  easy 
transportation. 

"The  Pastoral  Zone"  covers  300,000  square  kilometers 
(187,500  square  miles),  and  extends  from  East  to  West,  from 
Barrancas,  on  the  vertex  of  the  Orinoco  delta,  to  the  plains  of 
Sarare  on  the  Colombian  frontier;  and  from  South  to  North  from 
the  Vichada  River  to  the  mountains  of  El  Pao  in  the  State  of 
Carabobo.  It  includes  the  states  of  Portuguesa,  Zamora, 
Cojedes,  Apure,  Guarico,  Anzoatequi,  Monagoas,  Bolivar  and 
part  of  the  other  neighboring  states. 

This  entire  region  is  most  admirably  suited  for  the  raising  of 
cattle.  All  year  round  there  is  an  abundance  of  green  grass  and 
the  cattle  do  not  need  much  care.  Here  exists  one  of  the  finest 
natural  pastures  of  the  world,  capable  of  supporting,  with  the 
use  of  modern  methods,  50,000,000  head  of  cattle,  twenty-five 
times  the  number  now  existing. 

There  are  two  seasons — wet  and  dry.  During  the  rainy 
season,  from  June  to  October,  the  cattle  feed  in  the  highlands 
and  mesas,  which  are  not  subject  to  inundation.  From  January 
to  May,  the  dry  season,  they  feed  in  the  lowlands,  which  always 
retain  a  natural  dampness  and  abundance  of  grass. 

The  climate  of  this  zone  is  slightly  warmer  than  that  of  the 
plains  of  Texas,  and  the  dampness  of  the  lowlands  results  in  a 
much  greater  growth  of  vegetation  suitable  for  cattle. 

Throughout  this  region  are  scattered  the  cattle  farms  of  the 
country,  in  most  of  which  the  primitive  methods  of  cattle  raising 
are  still  followed.  The  "llaneros,"  as  the  inhabitants  of  the 
plains  are  called,  have  not  yet  commenced  to  utilize  the  modern 
methods  for  breeding  or  raising  cattle.  The  cattle  run  almost 
wild  and  considerable  loss  results  from  the  lack  of  proper  care. 
The  milk  is  obtained  almost  entirely  by  the  calf,  and  thus 
another  great  source  of  income  is  lost.  This  accounts  for  the 
importation  of  $400,000  worth  of  butter  annually. 

Each  year  the  cattle  over  three  years  old  are  separated  from 
the -herd  and  slaughtered,  although  the  slaughter  of  cows  is  pro- 
hibited, and  General  Gomez  has  absolute  control  over  the 
slaughter  of  beef  for  home  consumption.  Then,  until  the  next 
year,  the  cattle  are  again  allowed  to  run  wild  and  at  will. 

The  reason  for  this  apparent  carelessness  is  the  regrettable 


Venezuela  Report  91 

lack  of  sufficient  labor  to  care  for  the  herds.  This  is  also  the 
main  reason  for  loss  by  disease  and  drought. 

The  Orinoco  River,  1500  miles  long,  and  1900  miles  long  if 
measured  by  its  Guaviare  branch,  lies  entirely  within  Venezuela, 
and  drains  this  great  cattle  section.  It  has  436  tributaries,  and 
plays  an  important  part  in  the  transportation  of  cattle.  Here 
lies  the  remedy  for  drought.  No  steps  have  yet  been  taken  for 
the  proper  storage  of  water  for  emergency  use;  with  the  instal- 
lation of  water  storing  facilities  the  drought  loss  may  be  practi- 
cally eliminated.  The  screw-worm  of  the  kind  existing  on  our 
Texas  ranches  is  here  in  evidence  and  loss  undoubtedly  results 
from  this  source. 

Malarial  fever  at  times  works  havoc  in  various  sections  of  the 
"  llanos. "  Though  it  may  be  said  that  the  effects  of  this  disease 
are  greatly  exaggerated  it  is  true  that  the  disregard  of  the  laws 
of  hygiene  is  responsible  for  the  wide  prevalence  of  this  disease. 
It  is  the  supine  ignorance  of  a  portion  of  the  half-savage  people 
who  inhabit  the  plains,  which  allows  the  disease  to  gain  danger- 
ous headway.  These  people  live  and  eat  in  primitive  fashion, 
drinking  muddy  water,  eating  badly  cooked  roots  and  beef,  with- 
out salt,  sleeping  in  the  open  nearly  naked,  and  consuming  at 
every  opportunity  huge  quantities  of  coffee  and  spiritous 
liquors  (aguardiente),  thus  becoming  predisposed  to  end  as 
victims  of  the  dread  disease.  With  the  adoption  of  sanitary 
methods  to  combat  the  fever,  it  may  be  wiped  out  upon  the 
plains,  as  is  now  happening  in  some  of  the  better  ranches  where 
the  workmen  observe  the  elementary  laws  of  hygiene. 

Considering  Venezuela's  natural  advantages  and  the  hand- 
some profits  even  now^realized  under  the  loose  methods  of  breed- 
ing followed,  it  is  certain  that  Venezuela  is  destined  to  be 
primarily  a  cattle  country.  "  If,  notwithstanding  the  unprogres- 
sive  methods  followed  in  the  breeding  of  cattle,  and  despite 
the  lack  of  care  on  the  part  of  the  'llanero'  in  the  selection  of 
good  males,  resulting  in  a  large  percentage  of  weak  calves,  which, 
on  reaching  puberty,  give  little  milk  and  little  beef,  it  still 
appears  that  breeding  is  the  most  profitable  industry  in  the 
country,  it  can  well  be  imagined  how  the  profits  will  increase 
when  the  Venezuelan  breeder  puts  into  full  operation  the  modern 
improved  methods  for  breeding,  such  as  the  selection  and  cross- 
ing of  good  breeds,  the  introduction  of  modern  methods  of  sani- 


92  School  of  Foreign  Service 

tation,  and  the  selection  and  improvement  of  the  pastures  for 
fattening  and  the  production  of  milk. "  (Director  of  Experi- 
mental Station  of  Agriculture,  Dr.  Martinez  Mendoza). 

Until  very  recently,  a  decided  lack  of  adequate  transportation 
facilities  prevented  the  development  of  the  industry.  Death  of 
stock  and  loss  of  healthy  condition  when  transported  by  the 
shaky  mountain  railways  decreased  the  profits  of  the  cattle 
raisers.  Lately,  1,800  miles  of  motor  roads  were  built  under  the 
direction  of  General  Gomez,  which  afford  an  outlet  for  the  pro- 
ducts of  the  "llanos. "  Their  construction  means  the  unification 
of  the  country  and  its  development.  Probably  no  one  factor 
has  been  of  such  prime  importance  to  the  nation  as  this  great 
engineering  feat. 

Still,  it  must  be  acknowledged  that  these  roads  are  not 
sufficient  and  that  there  is  still  a  lack  of  transportation  facilities. 
The  one  saving  factor  in  the  situation  is  the  Orinoco  and  its 
branches. 

In  the  past  very  little  attention  has  been  given  to  the  system- 
atic crossing  of  breeds.  Of  late,  several  prominent  cattle 
raisers,  aided  by  General  Gomez,  have  begun  scientifically  to 
better  the  breeds  of  animals  by  the  importation  of  fine  foreign 
stock  Thus,  the  Zebu  cattle  has  been  in  the  country  for  some 
time.  This  type  excels  the  native  cattle  in  weight,  but  is  very 
fierce  and  wild. 

The  milk  cows  are  now  being  selected  with  great  care  and  good 
results  are  being  obtained  from  crossing  them  with  native  stock. 
Dutch,  English,  Swiss,  German  and  American  cows  are  kept  in 
several  up-to-date  establishments,  where  the  raisers  are  begin- 
ning to  overcome  the  difficulties  of  acclimatizing  the  foreign 
breeds,  and  a  high  average  in  the  production  of  milk  is  resulting. 

At  "La  Rinconada,"  an  establishment  very  near  Caracas,  the 
pure  breed  "Holstein  Friesian"  is  found  and  the  specimens  are 
sold  to  cattle-men  of  the  interior,  showing  a  commendable 
tendency  on  their  part  to  improve  their  stock.  I  have  visited 
this  establishment  and  may  say  that  great  diligence  is  exer- 
cised in  the  care  of  these  cattle. 

Although  the  principal  income  from  cattle  accrues,  of  course, 
from  the  slaughter  of  beef  and  sale  of  hides,  there  is  another 
great  source  of  income, — the  production  of  "cincho,"  cheese,  for 
home  consumption.  Cattle  on  the  hoof  now  command  a  price 


Venezuela  Report  93 

of  Bs.  25  ($5.00)  per  "arroba"  (25  pounds);  the  price  of  cheese 
is  Bs.  600  ($125.00)  per  100  kilos.  Because  of  the  recent 
advances  in  the  prices  of  cattle  and  cheese,  the  industry  has 
obtained  a  new  impetus  as  is  evinced  by  the  huge  investment  of 
foreign  capital  (mainly  English)  during  recent  years. 

The  Venezuelan  government  is  doing  its  best  to  encourage 
foreign  capital  to  invest  in  the  industry.  To  stimulate  pro- 
duction breeding  animals,  barbed  wire,  pumps  and  well-boring 
machinery  may  be  imported  at  a  very  low  rate  of  duty. 

Immigration  is  being  encouraged  by  the  payment  of  transpor- 
tation, passport,  and  incidental  expenses,  and  by  grants  of  land. 
In  spite  of  this,  immigration  however  is  very  small,  being  offset 
by  emigration,  and  the  high  death  rate  that  results  from  unsani- 
tary conditions  keeps  the  population  figures  of  the  country  prac- 
tically stationary. 

There  are  laws  in  operation  fixing  the  price  and  amount  of 
land  to  be  bought  by  any  one  person.  One  may  buy  6,000  acres 
of  first-class  grazing  land  and  10,250  acres  of  second-class  grazing 
land  at  very  low  prices.  He  must  improve  the  land  and  have  at 
least  ten  persons  on  every  250  acres,  in  the  case  of  land  grants, 
though  I  have  been  unable  to  ascertain  whether  this  also  applies 
to  bought  land. 

To  buy  land  one  first  applies,  in  writing,  to  the  governor  of  the 
state  in  which  the  land  is  situated.  If  no  objection  is  found  to 
the  sale,  a  land  commission  surveys,  classifies,  and  values  the 
land.  The  application  then  goes  to  the  Minister  of  Fomento, 
who,  if  he  approves  it,  issues  a  deed,  upon  payment  of  purchase 
price  in  bonds  of  National  International  Consolidated  Debt,  or 
the  equivalent  at  the  current  rates.  The  deed  must  then  be 
properly  recorded. 

The  government  is  encouraging  the  industry  by  the  imposition 
of  very  high  protective  duties.  An  example  may  be  found  in 
the  boot  and  shoe  industry  which  is  protected  by  a  tariff,  based 
in  1918  upon  gross  weight  and,  including  surtaxes,  amounting 
to  $274.10  per  100  pounds. 

Of  late,  more  and  more  impetus  has  been  given  to  the  estab- 
lishment of  canning,  tanning  and  meat  packing  plants.  Yet, 
there  is  only  one  packing  house  in  the  country.  The  "Vene- 
zuelan Meat  and  Products  Co.,  Ltd., "  an  English  company,  with 
a  plant  at  Puerto  Cabello,  has  practically  a  monopoly  of  the/ 


94  School  of  Foreign  Service 

exportation  of  frozen  and  chilled  meats  and  of  "tasajo"  (jerked 
beef).  The  capacity  is  300  head  of  cattle  per  day  and  the  chief 
market  is  Europe.  The  same  company  has  invested  large  sums 
in  choice  cattle  lands  near  the  site  of  the  factory,  and  since  its 
infancy  has  shown  a  consistent  tendency  to  steady  expansion. 

There  are  two  sizable  tanneries  at  Maracaibo  which  supply 
the  local  demand  for  coarse  leather.  Uppers  for  shoes  and  finer 
grades  are  imported  from  the  United  States.  Other  smaller 
tanneries  are  located  at  Caracas,  Valencia  and  La  Guaira. 

At  Barrancas  is  located  a  salt-meat  plant  which  is  expected 
shortly  to  handle  25,000  head  of  cattle  per  year  in  the  produc- 
tion of  gelatine,  meat  extracts,  fertilizer  and  salt  meats.  The 
very  high  price  of  salt  in  Venezuela  is  a  severe  drawback  to  the 
salt-meat  industry. 

Rio  Chico  is  a  manufacturing  town,  making  soap  and  candles 
and  passing  the  hides  to  La  Guaira  for  tanning  and  export. 

The  Dairy  and  Canning  plant  at  Maracay  is  entitled  to  special 
mention.  It  owes  its  success  to  the  support  given  by  General 
Gomez,  its  largest  stockholder.  It  is  ideally  located,  being 
surrounded  by  some  of  the  most  modern  cattle  ranches  of  the 
country,  and  has  the  advantages  of  nearby  and  easily  accessible 
markets.  The  company  also  owns  its  own  cows,  and  hogs  which 
are  supported  by  the  waste  and  refuse  of  the  factory. 

The  building  is  a  specially  constructed  one,  fitted  out  with  a 
refrigerating  plant  and  modern  machinery  of  American  and 
German  make.  Even  the  cans  used  are  made  within  this 
building.  Two  kinds  of  butter  are  made  here,  one  with  salt  and 
the  other  without  salt.  This  is  the  best  butter  made  in  the  coun- 
try. Canned  sterilized  milk  and  cream  are  also  produced,  as  is 
also  a  high  grade  of  cheese.  The  capacity  is  400  pounds  of 
butter  and  100  pounds  of  cheese  per  day. 

Immediately  upon  entrance  to  this  factory,  one  is  impressed 
by  the  extreme  cleanliness  and  efficiency  existing  and  by  the 
up-to-date  methods  used. 

Finally,  we  may  consider  the  advisability  of  investing  capital 
in  the  cattle  industry  in  Venezuela,  as  there  is  no  question  that 
real  opportunity  for  profit  exists  here. 

Venezuela  is  superior  to  Argentina,  the  other  great  cattle 
country  of  South  America,  in  every  respect  except  one,  that  of 
the  amount  of  pasture  land.  This  handicap,  however,  is  not 


Venezuela  Report  95 

very  important  considering  that  Venezuela  is  not  producing  to 
capacity  by  96  per  cent  and  that  it  will  be  a  very  long  time  before 
it  becomes  necessary  to  look  for  means  of  extending  the  present 
feeding  grounds.  When  that  time  comes,  alfalfa  may  be 
planted  on  the  mesas  and  highlands  not  bearing  a  natural 
growth  of  grass.  It  has  been  demonstrated  that  both  alfalfa 
and  elephant  grass  will  grow  in  almost  all  sections  of  Vene- 
zuela. 

Venezuela  is  a  week  nearer  to  Europe  than  Argentina.  The 
vast  importance  of  this  fact  is  self-evident,  for  it  means  that 
Venezuela  will  always  be  called  upon  up  to  the  limit  of  her  pro- 
duction. 

Land  is  cheap.  A  square  league  of  meadow  land  may  be  had 
for  380.00.  The  best  pasture  land  in  a  good  location  may  be 
bought  for  3800.00  per  square  league.  Land  is  abundant  too, 
and  but  a  small  percentage  is  now  in  use. 

Guanta  is  a  port  of  the  Carribean,  in  the  State  of  Bermudez, 
12  miles  east  of  Barcelona,  with  railroad  connections.  It  has  a 
protected  harbor,  with  an  easy  and  safe  entrance  1998  feet  wide, 
secure  anchorage  for  large  vessels,  and  a  good  wharf.  Behind 
Guanto  lies  fine  cattle  land,  a  significant  fact  when  it  is  recalled 
how  very  important  is  the  shipment  of  live  cattle. 

Here  would  be  an  ideal  spot  for  an  American  packing  house, 
and  the  country  behind  would  seem  well  adapted  for  the  invest- 
ment of  capital  in  cattle-raising. 

The  regions  just  below  Ciudad  Bolivar  would  also  be  a  good 
location  for  an  American  enterprise.  Stock  may  be  very  cheaply 
bought  and  brought  down  the  Apure  and  Orinoco  rivers  to  the 
plain  below  the  city,  where  they  could  be  fattened  and  slaugh- 
tered. There  is  easy  access  to  the  Carribean  and  Atlantic,  to 
Trinidad  and  other  markets. 

On  the  other  hand,  we  may  say  that  the  future  of  the  cattle 
industry  depends  primarily  upon  the  political  situation  of  the 
country.  It  is  this  factor  which  has  retarded  the  industry  in  the 
past  and  which  is  now  responsible  for  the  hesitancy  on  the  part 
of  foreign  capital.  The  profit  to  be  derived  from  any  industry 
here  depends  upon  a  firm,  stable  government.  Under  such  a 
government  the  profits  to  be  derived  from  cattle  will  be  immense. 
If  political  wars  again  break  out,  however,  heavy  losses  are 
almost  inevitable. 


96  School  of  Foreign  Service 

The  present  administration  has  done  more  for  the  develop- 
ment of  the  country  than  any  previous  government  and  its 
attitude  towards  foreign  capital  is  favorable.  It  has,  further- 
more, been  firm  and  stable. 

Still,  beneath  it  all,  one  detects  signs  of  a  strange  unrest. 
The  observant  traveler  hears  murmurings  every  day.  There  is 
no  denying  the  fact  that  the  present  government  is  a  military 
one.  Yet,  I  believe  that  the  intelligent  and  influential  class  of  the 
nation  realize  the  good  it  has  done  and  feel  that  the  country 
must  never  return  to  the  old  conditions  of  ceaseless  revolution. 
I  am  of  the  opinion  that  Venezuela  has  fairly  embarked  upon  a 
program  of  development  and  prosperity. 

Another  factor  to  be  seriously  considered  is  the  aforemen- 
tioned shortage  of  labor.  Yet,  in  spite  of  this,  labor  is  very  cheap. 
The  government  has  a  favorable  attitude  toward  grants  for 
colonization  purposes,  and  in  this  lies  a  golden  opportunity  for 
a  resourceful  man  with  capital  to  bring  his  own  laborers  here  and 
realize  great  profits  in  the  venture. 

If,  upon  more  detailed  examination  of  the  conditions  than  I 
have  been  able  to  institute  during  my  limited  stay,  it  is  still 
the  desire  of  Americans  to  invest  here,  such  action  must  be 
taken  soon.  The  unprecedented  success  of  the  packing  plant 
at  Puerto  Cabello  has  encouraged  other  Britons  to  invest.  The 
company  itself  is  acquiring  the  best  lands  about  the  site  of  the 
plant  and  interested  investors  are  buying  the  desirable  land  in 
other  sections.  The  American  who  intends  to  invest  should  do 
so  immediately  or  he  will  find  that  the  choice  cattle  lands  and 
the  best  locations  for  packing  houses  will  be  in  the  hands  of  the 
English.  Prompt  action  is  imperative. 

Willard  C.  Frazee. 


AT  THE  CENTRAL  TACARIGUA,   A  LARGE   SUGAR  CANE  ESTATE 


DR.  SHERWELL  AND  DR.  SANCHEZ,  DIRECTOR  OF  THE  NATIONAL  LIBRARY 

WITH  GEORGETOWN  STUDENTS  AT  FOOT  OF  STATUE  TO  GENERAL  RIBAS 

AND  STUDENT  SOLDIERS  OF  THE  WAR  FOR  INDEPENDENCE 

Facing  p.  97 


Venezuela  Report  97 


MINERAL  RESOURCES  OF  VENEZUELA 

Before  discussing  the  minerals  of  Venezuela  we  shall  touch 
briefly  on  some  of  the  predominant  features  of  the  topographical 
formation  of  the  country,  without,  however,  entering  on  a 
detailed  description  of  the  geologic  aspects  of  the  rocks  and  soil. 
The  location  ,of  minerals  is  directly  connected  with  geologic 
formations,  and  the  findings  of  geologists  should  be  consulted 
before  we  can  take  up  the  more  intimate  study  of  mineral  ores 
for  commercial  and  industrial  purposes. 

It  has  been  stated  that  one  of  the  most  ancient  land  surfaces 
in  the  world  is  the  Guayana  Highlands,  and  from  observation 
made  on  this  point  they  may  be  said  to  offer  many  striking 
analogies  to  the  western  highlands  of  Scotland,  which  furnish 
such  frequent  opportunities  for  exalted  poetical  allusion  in  the 
writings  of  Robert  Burns.  The  great,  elevated  platform,  from 
which  rises  the  peaks  and  mountain  chains  of  Guayana  appears 
everywhere  to  be  composed  of  rock  which  during  the  process  of 
integration  and  disintegration  has  preserved  traces  of  a  primitive 
land  of  long  ages  ago  when  living  organisms,  if  there  were  any, 
had  not  reached  such  a  stage  in  their  development  as  to  leave 
relics  in  the  deposits  of  the  time.  The  mountains  are  thought 
to  be  composed  of  similar  rocks,  gneisses,  hornblendes,  schists, 
and  granite,  all  containing  evidence  of  great  antiquity  in  point 
of  geologic  time.  This  Guayana  complex,  as  it  is  called,  has 
been  considered  by  geologists  as  more  or  less  equivalent  in  age 
to  the  Lewisian  gneiss  of  Scotland  and  therefore  one  of  the  oldest 
members  of  the  Archaean  system. 

While  in  all  probability  northern  Venezuela  has  no  rocks  quite 
as  ancient  as  those  of  Guayana,  the  geological  history  of  this 
part  of  the  country  has  been  much  more  eventful  and  the 
number  of  earthquakes  suggest  that  even  now  the  form  of  the 
earth's  crust  in  this  region  is  undergoing  comparatively  violent 
changes.  As  is  commonly  the  case,  to  find  the  oldest  rocks  one 
must  search  the  hills.  The  masses  of  gneiss,  silvery  mica, 
schist,  marble,  etc.,  which  form  the  highest  part  of  much  of  the 
mountain  region,  were  first  studied  by  Mr.  G.  P.  Wall  in  the 
Caribbean  Hills  in  1860  and  named  by  him  the  Caribbean 


98  School  of  Foreign  Service 

Series.  The  silvery  mica  flakes  of  this  region  are  sometimes 
mistaken  for  the  precious  metal  and  many  valueless  specimens 
have  been  offered  for  sale  as  silver  to  credulous  fortune  hunters. 
The  mineral  wealth  of  Venezuela  although  not  as  extensively 
developed  as  conditions  would  seem  to  invite,  is  without  doubt 
of  very  great  extent,  especially  in  the  states  of  Bolivar  and 
Yuruari.^The  principal  mineral  resources  consist  of  gold, 
silver,  copper,  iron,  zinc,  lead,  quicksilver,  asphalt,  petroleum, 
coal,  sulphur  and  precious  stones.  There  exists  hardly  any 
known  mineral  product  that  is  not  found  in  some  part  of  the  vast 
territory  of  Venezuela. 

GOLD 

The  yellow  lure  that  drew  the  early  European  venturers  to 
the  West  is  still  one  of  the  principal  sources  of  wealth  in  Vene- 
zuela. Since  the  Conquest  gold  has  always  been  one  of  the 
chief  attractions  offered  by  Venezuela  to  prospectors  and 
capitalists.  In  1904  Venezuela  occupied  fifth  place  in  the  pro- 
duction of  gold  in  the  American  Republics  and  it  is  acknowledged 
that  the  evidence  obtained  in  the  various  expeditions  in  search 
of  this  precious  metal,  indicates  that  gold  exists  in  greater 
quantities'than  statistics  tend  to  show.  The  greatest  output  is 
in  the  region  of  Yuruari,  which  includes  "El  Callao. "  Lack  of 
experience  and  carelessness  of  management  on  the  part  of 
early  companies  have  led  to  the  shutting  down  of  mine  after 
mine  when  once  the  accessible  ore  of  the  vein  was  exhausted,  or 
lost  by  faulting.  Among  the  earlier  mines,  the  Callao  was 
perhaps  the  most  famous,  though  at  all  times  the  mining  indus- 
try in  this  region  has  been  hampered  by  the  cost  and  difficulty 
of  transportation,  a  drawback  only  to  be  removed  through  the 
construction  by  the  government  either  of  macadamized  roads  or 
railroads,  at  the  outset  preferably  the  former.  There  are  rich 
veins  in  all  the  mountainous  lands  between  the  Yaracuy  River 
and  the  cities  of  San  Felipe,  Nirgua,  and  Barcelona.  Near 
Carupano  large  mines  are  being  exploited  by  New  York  cap- 
italists, who  have  been  able  to  extract  seven  ounces  per  ton  out 
of  the  ore  mined;  besides  these  there  are  also  mines  in  the 
vicinity  which  contain  rich  deposits  of  silver,  copper  and  lead. 

The  value,  in  average  years,  of  Venezuelan  gold  production 
since  1896  has  been: 


Venezuela  Report  99 

1896 $948,500  1902 $433,800 

1897 1,057,400  1903 600,000 

1898 1,089.300  1915 1,280,217 

1899 593,500  1916 1,479,218 

1900 321,200  1917 898,431 

1901 321,200 

COPPER 

Copper  ores  are  fairly  common  in  the  northern  Cordilleras,  and 
likewise  in  the  mines  of  Aroa  in  Yaracuy,  112  kilometers  from 
Puerto  Cabello.  Here  the  pyrite  veins  occur  in  the  Capache 
Limestone  not  far  from  the  point  where  it  has  been  crossed  by 
a  mass  of  granite.  Copper  ores  are  believed  to  exist  in  many 
other  places  in  the  mountains  of  Venezuela,  especially  in  the 
mines  of  Seborneo  and  Bailadores.  A  rich  deposit  has  recently 
been  opened  up  near  Pao  in  the  northern  part  of  the  state  of 
Cojedes.  But  the  development  of  metals  has  been  so  retarded 
during  the  past  year,  that  the  South  American  Copper  Syndicate 
Ltd.,  one  of  the  principal  concerns,  has  practically  suspended 
operations  and  very  little  production  has  been  realized  since 
March,  1919.  The  normal  output  could  not  be  maintained 
after  the  termination  of  the  European  war,  which  accounts  for 
the  disproportion  observable  between  the  years  1918-1919 
in  the  production  of  gold  and  copper.  In  1919,  653,456.77 
grams  of  gold  were  mined  as  against  712,007.08  in  1918.  In 
1919,  2,090,290  kilograms  of  copper  were  produced  as  against 
29,708,195  kilograms  in  1918. 

IRON 

Many  signs  of  hematite  and  magnetic  iron  occur  in  the  coast 
of  the  Cordilleras  in  the  mountains  above  Cora,  Barinas,  Barce- 
lona, Cumana  and  in  many  spots  in  the  mountains  of  Parima; 
the  most  valuable  ore  is  found  near  the  river  Imataca,  a  tribu- 
tary of  the  lower  Orinoco,  eighty-six  kilometers  from  the 
mouth.  At  one  point  the  iron  is  only  487  meters  from  the 
river.  There  are  inexhaustible  deposits  of  magnetic  mineral 
which  give  80%  pure  metal,  easily  accessible  and  presenting 
little  if  any  difficulty  in  transportation.  The  veins  are  said  to  be 
numerous  and  extensive.  In  1901  seven  hundred  tons  were 
shipped  to  Baltimore  where  the  ore  was  examined  and  described 
as  magnetic  with  60-70%  of  iron  content.  The  main  deposit  is 


100  School  of  Foreign  Service 

known  as  Imatoca,  but  there  are  several  other  well  known 
deposits  in  close  proximity  such  as  El  Salvador,  Nicaragua, 
La  Magdalena,  El  Encantado,  Costa  Rica  and  Yucatan. 

Every  natural  advantage  is  afforded  in  the  working  and  devel- 
oping of  iron  ore  deposits  in  Venezuela.  In  a  metallic  mine, 
value  depends  more  upon  its  fertility  and  less  upon  its  situation. 

It  is  otherwise  with  coal.  The  value  of  a  coal  mine  to  a  pro- 
prietor frequently  depends  as  much  upon  its  situation  as  upon 
its  fertility;  hence  we  may  deduce  the  conclusion  that  the  iron 
mines  of  Venezuela  being  both  fertile  and  commercially  well 
situated,  should  have  a  compelling  interest  for  foreign  capital, 
especially  American  capital,  in  its  search  for  profitable  fields  of 
investment. 

COAL 

In  many  parts  of  the  Caribbean  Hills,  the  Segovia  Highlands, 
the  Andes  as  well  as  Maracaibo  and  the  Coco  Lowlands,  deposits 
of  coal  exist,  but  have  only  been  worked  in  a  perfunctory  manner 
in  scattered  regions.  The  coal  mines  west  of  Maracaibo  have 
produced  the  best  specimens,  and  seams  of  a  similar  nature  have 
been  opened  near  Coco  by  shallow  workings.  The  most 
extensive  coal  mines  are  those  of  Naricual  some  fifteen  miles 
east  of  Barcelona,  where  the  partially  explored  area  has  revealed 
some  hundred  deposits  of  coal  of  regular  formations  measuring 
from  10  centimeters  to  2  meters  in  thickness. 

Coal,  however,  is  not  one  of  the  great  revenue  paying  staples, 
due  to  the  fact  that  the  mines  are  located  in  a  country  thinly 
inhabited,  and  without  good  roads  or  facilities  for  transporta- 
tion by  water. 

SALT 

Salt  is  perhaps  the  most  profitable  mineral  for  the  government, 
due  to  the  fact  that  it  is  a  government  monopoly.  The  State 
allows  only  certain  specified  companies  to  mine  or  otherwise 
obtain  this  staple.  One  of  the  richest  deposits  is  the  salina  of 
Aroga,  discovered  by  Nino  in  1499.  An  extensive  surface  of 
pure  sodium  chloride  is  found  here,  which  yields  large  annual 
incomes  to  the  government.  Salt  is  found  in  almost  all  regions 
of  Venezuela  as  follows: 


Venezuela  Report  101 


States  and  Territories  Deposits  and  Mine 

Zulia 5 

Falc6n 20 

Carabobo 5 

Anzoatequi 7 

Sucre 4 

Nueva  Esparta 10 

Guayana 1 

Apure 1 

Bolivar 

Goagira 6 

Col6n 5 

64 

The  states  of  Tachira,  Trujillo  and  Merida  use  great  quantities 
of  yellow  salt,  white  salt  only  being  consumed  in  the  regions 
near  the  salinas  of  Zulia.  From  1874  to  1904  this  commodity 
yielded  $2,753,761.44  in  revenue  to  the  government. 

In  1918  the  extent  of  the  mining  industry  was  so  broad  that 
a  special  directory  service  was  suggested  by  the  Minister  of 
Fomento,  separate  from  the  present  Union  of  Mines,  Govern- 
ment Lands,  Industry  and  Commerce.  Mining  concessions  in 
1917  included  9  in  iron,  14  in  gold,  1  in  copper  and  iron,  8  in 
copper  and  1  in  mica.  In  1918,  9  were  granted  in  gold,  and  5  in 
iron.  The  production  totalled: 

Gold 958,304  grams 

Copper 42,270,900  kilograms 

Asphalt 54,071,700        " 

Petroleum 18,248,524 

Coal 20,164,915        " 

EXPORTS  IN  1917 

Companies.  Metal.  Quantity.  Value. 

South  American  Copper 

Syndicate,  Ltd Gold  902,510  grams  B.  2,669, 599. 19 

La     Cumaragua     Sindi- 

cato  Buria Copper  43,701,500  Kilograms 

Nat.  Government \ 

So.  American  Co [  Asphalt 47,124,000 

N.  Y.  &  Bermudez  Co..,  ) 

Caribbean  Petroleum  Co.  Petroleum  8,650,700 


102  School  of  Foreign  Service 

The  general  mining  output  of  Venezuela  in  1918  exhibited  the 
following  characteristics: 

The  production  of  coal  was  25,332  tons  in  1918  against 
20,165  tons  in  1917,  all  from  the  two  mines  operated  by 
the  government.  Considerable  improvements  were  made 
at  the  Naricual  mines,  and  plans  have  been  formulated 
involving  the  installation  of  briquetting  machines,  and  the 
electrification  of  the  mine  by  means  of  the  falls  of  the  Neveri 
River  as  the  power  source.  The  cost  of  coal  at  the  pit  was 
13  bolivares  ($2.51)  per  metric  ton,  and  40  bolivares  ($7.72) 
when  delivered  to  private  parties. 

Copper  production  fell  from  42,270  tons  in  1917  to  29,708 
tons  of  ore  in  1918,  probably  owing  to  lack  of  vessels  for 
transportation  and  the  falling  off  of  demand  for  the  metal 
following  the  cessation  of  hostilities  in  Europe. 

Twelve  companies  were  engaged  in  mining  gold,  the  out- 
put being  958,304  grams  in  1916  and  712,007  grams  in 
1918. 

Only  one  company  produced  commercial  asphalt  (46,- 
453  tons).  (See  Report  on  Petroleum  and  Asphalt,  p.  102.) 

The  number  of  mining  claims  of  all  kinds  taken  out  was 
97  in  1917,  119  in  1918  and  135  in  the  first  three  months  of 
1919. 

James  J.  O'Neil. 


THE  PETROLEUM  AND  ASPHALT  INDUSTRY 
IN  VENEZUELA. 

[The  writer  of  this  report  is  much  indebted  to  Mr.  W.  T.  S.  Doyle,  a  graduate 
of  Georgetown  University,  now  manager  of  the  Caribbean  Petroleum  Company 
in  Venezuela.] 

The  purpose  of  this  report  is  to  present  a  complete,  yet  con- 
cise, discussion  of  the  petroleum  and  asphalt  situation  in  Vene- 
zuela. The  first  part  is  devoted  to  petroleum  and  the  second 
part  to  asphalt. 

Senor  N.  Veloz  Goiticoa,  a  prominent  Venezuelan,  says, 
"There  is  scarcely  a  mining  product  known  that  can  not  be 
found  in  some  part  of  the  vast  expanse  of  Venezuela. "  This 
statement,  intended  to  apply  to  all  minerals,  is  particularly  true 
of  petroleum  and  asphalt  in  respect  of  which  the  great  area  of 
Venezuela  has  as  yet  hardly  been  scratched. 


Venezuela  Report 


103 


PETROLEUM 

Some  of  the  natives  of  Venezuela  knew  of  the  properties  of 
petroleum  as  far  back  as  1856,  and  used  the  oil  in  lamps. 
Deposits  were  later  discovered  in  the  interior  of  the  country,  par- 
ticularly near  the  banks  of  the  Venezuelan  lake  of  Maracaibo. 
In  the  year  1883  the  Government  granted  the  first  concession 
to  a  local  organization,  called  the  "Compania  Petroleo  del 
Tachira,"  which  installed  a  hand-drilled  well  in  the  state  of 
Tachira;  this  plant  is  in  operation  at  the  present  day,  although 
old-fashioned  methods  are  being  used  to  obtain  the  oil  from  the 
ground,  consequently  the  production  is  negligible.  Immediately 
after  this  discovery  several  concessions  were  granted  to  various 
interests,  but  they  lapsed  because  no  work  was  started  on  them. 
No  further  interest  was  shown  in  petroleum  until  1893,  when  a 
general  mining  law  was  enacted  which  included  provisions  for 
petroleum  and  asphalt.  This  law  was  in  force  until  1904  when 
a  new  code  was  enacted,  containing  special  legislation  relating 
to  petroleum  and  asphalt.  The  main  provisions  were  that 
claims  could  no  longer  be  taken  up  by  denouncement  proceed- 
ings,1 but  only  under  a  special  contract  entered  into  with  the 
Federal  Executive,  the  President. 

In  1905,  during  Castro's  administration,  the  mining  law  of 
1904  was  remodeled.  The  act  was  very  short, — containing  not 
more  than  13  articles, — but  it  placed  in  the  hands  of  the  Execu- 
tive a  great  deal  of  power  that  he  had  heretofore  not  possessed. 

All  dealings  regarding  concessions  were  to  be  negotiated 
directly  with  him.  In  the  year  1906,  pursuant  to  authority 
delegated  to  the  Federal  Executive,  an  Executive  decree  was 
formulated  which  provided  for  the  whole  procedure  under  which 
concessions  were  to  be  granted.  Under  this,  important  initial 
steps  were  taken  and  many  concessions  granted.  Four  of  these 
concessions  are  in  force  today;  namely: 

1.  The  Colon  District  (Colon  Development  Co.,  Ltd.) 

2.  The    Maracaibo    and   Bolivar   District    (Venezuelan   Oil 
Concessions,  Ltd.) 

3.  Buchivacoa  District  (British  Controlled  Oilfields,  Ltd.) 

4.  Silva  and  Zamora  District  (North  Venezuelan  Petroleum 
Co.,  Ltd.) 

^Id  Spanish  law  which  provided  that  a  person  or  party  of  persons  could  stake 
out  any  unowned  piece  of  ground,  and  then  establish  claim  for  it. 


104 


School  of  Foreign  Service 


Under  the  new  code  of  1909-1910,  several  new  contracts  were 
made.  A  roving  concession  was  granted  to  John  Allen  Tregelles, 
an  Englishman,  to  explore,  the  whole  northern  part  of  Vene- 
zuela. He  located  and  started  to  drill  a  well  near  Cumana,  but 
without  result.  The  rest  of  his  concession  lapsed,  after  a  period 
of  two  years,  through  non-performance.  The  next  important 
concession  under  the  code  of  1909-1910  was  granted  to  the  Ber- 
mudez  Company  which  obtained  a  small  area,  not  covered  by 
the  Tregelles  concession;  their  efforts  were  rewarded  with  more 
success.  The  Pauji  Company,  a  local  organization,  also 
obtained  a  concession  for  a  small  area,  but  their  efforts  met 
with  but  small  success. 

On  the  second  of  January,  1912,  the  Caribbean  Petroleum 
Company  started  the  first  solid  work  in  the  exploitation  of  the 
petroleum  fields.  They  obtained  permission  to  explore  over 
1,000  different  sections  and  was  the  first  company  to  achieve 
substantial  success.  Drilling  was  begun  in  1914,  and  three 
wells  in  Mene  Grande,  state  of  Zulia,  and  one  in  Perija  turned 
out  to  be  successful.  In  the  same  year  the  "Venezuelan  Oil 
Concessions,  Ltd.,"  a  British  corporation,  drilled  a  successful 
well  near  Cabimas,  and  the  "Colon  Development  Company," 
also  a  British  concern,  struck  oil  near  the  Rio  de  Oro. 

The  law  of  1915  showed  that  the  government  was  exhibiting 
a  tendency  to  exert  a  controlling  influence,  much  more  than 
before,  over  the  various  oil  fields.  It  was  found  no  longer 
possible  to  obtain  the  enormous  concessions  that  had  heretofore 
been  granted. 

In  1918  still  another  new  law  was  enacted.  Just  about  this 
time  greater  interest  was  being  displayed  in  Venezuelan  petrol- 
eum, a  condition  brought  about  through  the  operation  of  the 
economic  law  of  supply  and  demand.  The  European  War,  and 
the  failure  of  some  of  the  most  important  Mexican  fields  had  a 
great  deal  to  do  with  the  shortage.  The  world  naturally 
looked  for  new  petroleum  fields,  and  Venezuela  seemed  to  be 
among  the  most  promising  prospects.  Pursuant  to  the  1918 
law,  an  Executive  Decree  was  formulated  on  October  9,  1918, 
establishing  the  conditions  required  to  explore  and  exploit 
petroleum,  granting  to  prospectors  all  the  necessary  facilities, 
and,  in  a  word,  securing  for  Venezuela  the  efficient  and  profitable 
exploitation  of  her  valuable  deposits.  In  pursuance  to  said 


Venezuela  Report  105 

decree,  the  Fomento  Department  having  passed  several  reso- 
lutions, opened  for  bids  the  zones  which  were  free  in  the  states 
of  Zulia,  Tachira,  Trujillo,  Merida,  Falcon,  and  Sucre. 

In  the  spring  of  1919  sixty- four  contracts  were  made  with  the 
government  by  various  interests,  as  follows: 

1.  West  India  Oil  Company  (Branch  of  Standard  Oil  Com- 

pany.) 

2.  The  Sun  Oil  Company,  with  subsidiaries  as  follows: 

a.  Venezuela  Oil  Fields,  Lt'd. 

b.  Venezuelan  Sun,  Lt'd. 

c.  Sucre  Oil  Fields,  Lt'd. 

d.  Trujillo  Oil  Fields,  Lt'd. 

e.  Merida  Oil  Fields,  Lt'd. 

3.  Maracaibo  Oil  Exploitation  Company  with  subsidiaries 

as  follows: 

a.  Mara  Exploitation  Company. 

b.  Miranda  Exploitation  Company. 

c.  Perija  Exploitation  Company. 

d.  Paez  Exploitation  Company. 

It  will  be  noted  that  under  both  the  Sun  Oil  Company  and  the 
Maracaibo  Oil  Exploitation  Company  there  are  various  sub- 
sidiaries. The  reason  for  these  combinations  are,  that  under 
the  law  of  1918,  no  one  company  or  individual  may  control 
more  than  80,000  hectares  of  land  for  exploration  or  more  than 
40,000  for  exploitation  (1  hectare^ 2.471  acres). 

In  the  spring  of  the  year  1920  about  140  concessions  were 
granted  under  the  law  of  1918,  and  the  prospective  fields  were 
greatly  extended.  Whereas  in  1918  they  were  restricted  to  the 
western  part  of  Venezuela,  by  1920  they  had  been  extended  to 
several  sections  of  eastern  Venezuela.  In  the  western  part  of 
the  country,  at  the  present  time,  the  whole  Maracaibo  Basin  is 
covered  with  concessions,  and  most  of  these  are  being  exploited 
by  American  capital. 

At  the  present  day  there  are  five  companies  of  importance 
operating  in  Venezuela.  The  Caribbean  Petroleum  company, 
a  subsidiary  of  the  General  Asphalt  Company,  has  completed 
eight  wells,  all  of  them  producing,  the  combined  capacity  of 
which  is  about  6,000  barrels  per  day,  and  the  average  depth  of 
the  wells  1 ,200  feet.  All  these  wells  are  located  in  Mene  Grande, 


106  School  of  Foreign  Service 

in  the  state  of  Zulia,  east  of  the  lake  of  Maracaibo.  This  com- 
pany is  now  drilling  two  wells,  also  in  the  State  of  Zulia;  they 
have  already  drilled  nine  dry  holes  in  the  State  of  Zulia,  west  of 
Lake  Maracaibo.  [/The  Caribbean  Petroleum  possesses  the  only 
refinery  in  Venezuela,  located  at  San  Lorenzo,  on  Lake  Maracaibo, 
with  a  capacity  of  about  1,200  barrels  per  day,  intended  for  local 
consumption  in  Venezuela.  A  pipe  line  10  miles  long  connects 
the  wells  at  Mene  Grande  with  the  refinery  at  San  Lorenzo. 
The  large  refinery  at  Curacao,  D.  W.  I.,  completed  two  years 
ago,  is  also  refining  for  the  Caribbean  Petroleum  Company,  the 
crude  oil  being  transported  up  Lake  Maracaibo,  and  through 
the  port  of  Maracaibo,  in  barges. 

The  Colon  Development  Company,  a  British  Corporation, 
has  completed  four  wells,  two  of  900  feet,  one  of  1,200  feet,  and 
one  of  1,600  feet  and  is  now  drilling  a  fifth  well,  all  in  the  Dis- 
trict of  Colon,  state  of  Zulia,  south  and  southwest  of  Lake  Mara- 
caibo. Their  four  wells  are  believed  to  have  a  capacity  of  from 
400  to  500  barrels  a  day.  The  British  Controlled  Oil  Fields, 
Ltd.,  a  British  Corporation,  is  drilling  a  well  in  the  State  of 
...Falcon,  30  miles  east  of  the  city  of  Maracaibo,  and  about  10' 
miles  from  the  Caribbean  seacoast.  The  Maracaibo  Oil  Com- 
pany, an  American  corporation,  organized  in  the  autumn  of 
1919,  has  made  four  locations,  all  in  the  State  of  Zulia,  with  the 
principal  locations  in  the  Parija  district.  Camps  have  been 
established,  and  drilling  material  is  arriving  at  the  port  of 
Maracaibo.  The  Bermudez  Company,  a  subsidiary  of  the 
General  Asphalt  Company,  has  been  drilling  for  petroleum  near 
Guanoco,  for  the  past  23  months.  It  is  understood  that  after 
drilling  3,600  feet,  three-fourths  of  which  was  in  black  shale,  the 
work  was  abandoned. 

The  petroleum  now  being  produced  in  Venezuela  is  of  an 
inferior  quality.  The  wells  at  Mene  Grande,  controlled  by  the 
Caribbean  Petroleum  Company,  produce  petroleum  which  has 
a  specific  gravity  of  960,  with  a  heavy  asphalt  base,  and  con- 
tains about  15%  light  material,  and  85%  fuel. 

The  geographical  situation  of  Venezuela  makes  particularly 
interesting  the  various  petroleum  enterprises  which  should  con- 
tribute considerably  to  the  economic  development  and  prosper- 
ity of  the  country.  Furthermore,  the  Panama  Canal  is  not  far 
distant,  and  vessels  that  cross  through  it, — and  they  are  daily 


Venezuela  Report  107 

increasing  in  number, — will  be  able  to  utilize  easily  the  petrol- 
eum of  the  country. 

As  other  industries  have  suffered,  so  has  the  petroleum  indus- 
try been  seriously  handicapped  in  Venezuela  by  the  lack  of 
adequate  transportation  facilities.  There  are  undoubtedly 
many  rich  fields  of  petroleum  in  the  interior  of  the  country,  but 
it  is  clear  that  they  are  worthless  without  adequate  means  of 
transporting  the  product  to  the  seaports  or  centers  of  consump- 
tion. The  Caribbean  Petroleum  Company  has  had  considerable 
difficulty  in  transporting  its  product  to  Curacao  from  San 
Lorenzo,  a  difficulty  due  to  the  fact  that  at  the  narrow  neck  of 
Lake  Maracaibo,  there  is  a  bar  with  only  12  feet  of  water  above 
it.  It  is  obviously  impossible  for  ships  of  any  great  size  to  come 
over  the  bar  and  into  the  lake.  All  the  petroleum  that  is  shipped 
from  the  Maracaibo  district  at  the  present  time  is  handled  by 
shallow-draft  barges,  but  with  sufficient  capital,  and  some  good 
engineering,  this  difficulty  could  undoubtedly  be  overcome,  and 
it  would  then  be  possible  for  tank  steamers  to  come  into  the 
lake  and  receive  cargoes  of  crude  petroleum  from  the  various 
producing  points.  The  principal  port  in  this  section  is  Mara- 
caibo, in  the  state  of  Zulia,  and  all  petroleum  for  export  is 
handled  through  it. 

There  are  numerous  opportunities  offered  for  foreign  capital 
in  Venezuela  in  the  exploitation  of  petroleum.  As  noted  before, 
the  surface  has  as  yet  only  been  scratched,  and  indications 
to-day  point  out  that  there  are  many  possibilities  as  yet  un- 
touched.1 Geologists  say  that  there  are  signs  on  all  sides  of  the 
existence  of  petroleum,  but  just  where  the  big  producing  fields 
of  the  future  will  be  located  is  difficult  to  ascertain  at  the  present 
time. 

On  the  26th  of  June,  1920,  a  new  law  pertaining  to  petroleum 
and  asphalt  was  enacted.  A  full  copy  of  the  act,  in  Spanish,  is 
presented  with  this  report.  (On  file  in  School  of  Foreign 
Service.) 

The  following  table  gives  the  names  of  the  principal  petroleum 
and  asphalt  companies  operating  in  Venezuela,  with  capital 
invested: 

1Senator  Lodge,  addressing  the  Senate  of  the  United  States  on  April  13, 
1920,  declared  that  what  are  probably  the  largest  oil  fields  in  the  world  are  at 
the  point  of  development  in  Venezuela  and  Colombia. 


108 


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Names  of  Companies  Capital  in  Bolivares 

Caribbean  Petroleum  Company 20,782,482 

New   York   and   Bermudez   Company 

(asphalt) 8,914,932 

Colon  Development  Company,  Ltd 4,747,000 

Bermudez  Company 4,319,820 

Venezuelan  Oil  Concessions,  Ltd 2,316,996 

British  Controlled  Oilfields,  Ltd 1 ,500,000 


Capital  in  Dollars 
4,156,496 

1,782,986 
949,400 
863,964 
463,399 
300,000 


Total B's  42,581,230  $8,516,245 

There  are  in  addition  several  small  local  companies  operating 
in  Venezuela;  these  together  with  the  above  companies  represent 
probably  a  total  investment  of  Bs.  50,000,000  ($10,000,000)  in 
petroleum  and  asphalt. 

It  will  be  interesting  to  note  at  this  point  that  during  the  year 
1919  over  Bs.  2,000,000  were  paid  to  the  Venezuelan  Govern- 
ment by  North  American  corporations  for  the  right  to  exploit 
concessions. 

The  following  table  shows  amounts  (in  metric  tons)  of 
petroleum  exploited  and  exported  during  the  last  three  years: 

1917  1918  1919  Totals 

Exploited 18,248  24,153  22,957  65,358 

Exported 8,650  11,101  1,084  20,835 

It  will  be  noted  that  production  and  exportation  greatly 
increased  in  1918  over  1917.  In  1919,  production  was  decreased 
and  exportation  greatly  decreased  in  proportion  to  exportation 
of  1918.  In  1918,  almost  half  of  the  production  was  exported 
while  in  1919  the  amount  exported  was  about  one-twenty- 
second  part  of  the  amount  produced.  This  was  due  to  the  fact 
that  a  greater  amount  was  being  consumed  locally  in  Venezuela. 

ASPHALT 

The  age  of  asphalt  is  at  hand.  This  important  mineral 
already  has  many  applications  in  our  lives,  and  with  a  greater 
knowledge  of  its  possibilities,  its  utility  will  be  largely  extended. 
Asphalt  is  very  old.  It  was  the  material  that  welded  together 
the  stones  of  the  Tower  of  Babel;  it  was  found  on  the  shores  of 
the  Red  Sea,  and  the  Egyptians  used  it  in  the  preservation  of  their 
dead.  The  etymology  of  the  word  asphalt  ('Vprivitive  and 
<r0aX\w,  to  slip)  indicates  its  cementatory  properties,  and  the 
actual  ingredients  of  the  substance  are  common  scientific  knowl- 


Venezuela  Report  109 

edge.  Asphalt,  asphaltum,  bitumen,  maltha  or  mineral  pitch- 
mene, — different  names  for  the  same  substance, — is  an  amorphus, 
pitch-like  material,  black  or  brownish  in  color,  and  lustrous, 
being  composed  of  various  hydrocarbons,  whose  proportions 
vary  widely  according  to  the  locality  from  which  the  material 
is  obtained.  It  is  a  product  of  the  decay  of  vegetable  matter, 
and  commonly, — perhaps  always, — occurs  in  connection  with 
rocks  containing  bituminous  matter.  It  melts  at  a  heat  of  from 
195  degrees  to  21 2  degrees  Fahrenheit,  and  burns  with  a  bright, 
smoky  flame.  While  the  pitch-lake  of  Trinidad,  a  surface  a 
mile  and  a  half  across  of  pure  asphaltum,  is  perhaps  the  most 
remarkable  occurrence  of  this  mineral  in  nature,  still  the  lake  of 
Bermudez,  which  covers  1,000  acres  in  the  state  of  Sucre, 
Venezuela,  is  fast  equaling  the  former  in  commercial  importance. 
Asphalt  is  also  found  in  the  Pedernales  district,  in  the  state  of 
Monagas,  as  well  as  on  the  shores  of  Lake  Maracaibo.  As  an 
indication  of  the  value  of  Venezuelan  bitumen,  we  may  cite  the 
fact  that  this  special  variety  is  used  to  protect  the  tunnels  of  the 
New  York  subway  from  moisture. 

The  fact  that  Venezuela  has  sent  43,000  tons  of  asphalt  to  the 
United  States  in  one  year,  is  an  indication  of  the  future  wealth 
to  be  derived  from  the  systematic  exploitation  of  asphaltum 
there. 

At  the  present  writing  there  is  but  one  company  producing 
asphalt, — The  New  York  and  Bermudez  Company,  .a  sub- 
sidiary of  the  General  Asphalt  Trust.  This  company  is  working 
a  pitch  lake  at  a  point  near  Guanoco,  in  the  state  of  Sucre, 
adjacent  to  the  Gulf  of  Paria,  in  the  extreme  northeastern  part 
of  Venezuela.  The  concession  held  by  this  company  is  known  as 
the  Hamilton  Concession, — obtained  in  1886  for  a  duration  of 
99  years,  and  including  about  960  hectares.  The  grade  of 
asphalt  is  excellent,  and  in  many  respects  better  than  the  Trini- 
dad variety,  as  it  tests  at  a  grade  of  98%  asphalt  and  2%  water 
and  waste.  The  pitch  lake  is  only  7  miles  from  the  Rio  San 
Juan  and  the  company  is  particularly  fortunate  because  the 
deep  water  in  the  river  permits  ocean  steamers  to  come  alongside 
the  company's  docks.  A  railroad,  controlled  by  the  New  York 
and  Bermudez  Company,  is  in  operation  between  the  lake  and 
the  docks,  and  over  this  all  asphalt  produced  in  this  region  is 
transported.  The  transportation  situation  here  may  be  con- 


110  School  of  Foreign  Service 

trasted  with  that  in  the  Maracaibo  district  in  western  Vene- 
zuela, where  transportation  conditions  are  none  too  good. 

The  South  American  Asphalt  company  of  Philadelphia  has 
obtained  an  asphalt  concession  in  the  vicinity  of  Mene  Grande, 
near  the  eastern  shore  of  Lake  Maracaibo,  but  as  yet  no  results 
have  been  obtained. 

The  following  table  shows  the  capital  of  the  New  York  and 
Bermudez  Company,  and  the  amount  of  asphalt  exploited  and 
exported  for  the  last  three  years: 


Capital  of  New  York  and  Bermudez  Company,  Bs.  8,9 14,932  ($1,782,986 
can  gold).     Figures  in  metric  tons. 

1917  1918  1919  Totals 

Exploited. 54,071  46,453  45,936         146,460 

Exported 47,124          43,347  42,459         132,930 


Ameri- 


Official  Trade  Statistics  of  Finance  Department  for  1918-1919 
show  that  during  budget  year,  Venezuela  exported  more  than 
Bs.  1,000,000  ($200,000  American  gold)  worth  of  asphalt. 

The  law  of  June  26, 1920,  referred  to  in  the  last  part  of  section 
one  of  this  report,  applies  likewise  to  asphalt.  The  photographs 
attached  show  several  phases  of  the  petroleum  industry  in 
Venezuela  and  the  accompanying  map  shows  in  a  general  way 
the  petroleum  and  asphalt  concessions  and  the  areas  of  pro- 
duction. 

William  H.  Johnson. 


CHECKS,  DRAFTS,  BILLS  OF  EXCHANGE  AND  TRADE 
ACCEPTANCES  IN  VENEZUELA.' 

"In  the  primitive  ages  of  commerce,  article  was  exchanged  for  article  without 
the  use  of  money  or  credit.  This  was  simple  barter.  As  civilization  progressed, 
a  symbol  of  property — a  common  measure  of  value — was  introduced  to  facili- 
tate the  exchange  of  property.  This  might  be  iron  or  any  other  article  fixed 
by  law  or  by  consent,  but  it  has  generally  been  gold  or  silver.  This  certainly 

xln  the  discussion  of  commercial  paper  in  Venezuela,  it  will  be  noticed  that 
very  few  statistics  are  presented.  It  was  found  by  the  writer  that  very  few 
articles  had  been  written  on  this  subject  and  those  available  were  lacking  in 
statistics.  The  Chamber  of  Commerce,  however,  interested  itself  in  the  topic 
under  consideration  and  as  a  result  statistics  are  to  be  compiled  for  the  year 
1920. 


Venezuela  Report  111 

is  a  great  advance  beyond  simple  barter,  but  no  greater  than  has  been  gained 
in  modern  times  by  proceeding  from  the  use  of  money  to  the  use  of  credit. 

"Commercial  credit  is  a  creation  of  modern  times  and  belongs  in  its  highest 
perfection  only  to  the  most  enlightened  and  best  governed  nations. 

"Credit  is  the  vital  air  of  the  system  of  modern  commerce.  It  has  done 
more — a  thousand  times  more — to  enrich  nations  than  all  the  mines  in  the 
world.  It  has  excited  labor,  stimulated  manufacturers,  pushed  commerce  over 
every  sea,  and  brought  every  nation,  every  kingdom  and  every  small  tribe 
among  the  races  of  men  to  be  known  to  all  the  rest. 

"All  bills  of  exchange,  all  notes  running  upon  time  as  well  as  the  paper  cir- 
culation of  the  banks,  belong  to  the  system  of  commercial  credit.  They  are 
parts  of  the  one  great  whole.  We  should  protect  this  system  with  increasing 
watchfulness,  taking  care,  on  the  one  hand,  to  give  it  full  and  fair  play 
and,  on  the  other,  to  guard  it  against  dangerous  excesses." 

(Speech  of  Daniel  Webster  in  U.  S.  Senate,  March  18,  1834.) 

These  weighty  words  uttered  by  the  great  Webster,  more  than 
four-score  years  ago,  indicate  the  importance  of  the  functions  of 
commercial  credit,  the  red  blood  which  flows  through  the  veins 
of  commerce.  It  is  of  vital  importance,  therefore,  when  study- 
ing the  commerce  and  conditions  of  a  country  to  consider, 
as  we  are  about  to  do,  the  credit  system. 

CHECKS 

The  system  used  in  Venezuela  is  the  same  universal  check 
system  common  to  the  United  States  and  European  countries. 
Money  is  deposited  in  the  usual  manner  on  a  checking  account, 
in  return  for  which  bank  credit  is  received,  and  the  depositor 
thereafter  has  the  right  to  direct  the  bank  to  pay  to  the  order  of 
a  specified  person  any  part  of  the  capital  therein  deposited.^^ 

In  regard  to  the  period  of  time  during  which  this  method 
of  payment  has  been  employed  in  Venezuela  it  is  difficult  to 
secure  definite  information,  although  local  bankers  say  that  its 
history  is  very  short.  The  period  of  real  use  is  not  longer  than 
the  last  decade. 

Considering  the  proportion  of  checks  devoted  to  financing 
commerce,  it  is  necessary  to  divide  the  latter  into  two  main 
parts.  First:  commerce  with  the  interior  of  the  country,  in  the 
life  of  which  checks  are  practically  unknown,  all  payments 
being  made  in  gold  or  silver.  Second :  transactions  of  the  whole- 
sale merchants  and  the  larger  retail  dealers  of  important  cities, 
who  make  ready  use  of  this  efficient  and  easy  method  of  pay- 
ment. 


112 


School  of  Foreign  Service 


Although  no  statistics  have  ever  been  collected  showing  the 
amount  of  checks  used  in  Venezuela,  the  following  reliable 
data  was  obtained: 

An  estimate  was  made  in  1920  by  the  National  City  Bank  ot 
New  York  City,  sucursal  of  Caracas,  showing  that  about  75 
per  cent  of  the  business  handled  by  them  was  done  through  the 
medium  of  checks.  It  may  be  well  to  note  at  this  point  that 
this  bank  handles  the  business  of  American  firms  in  that  city 
together  with  other  foreign  companies  who  have  dealings  with 
the  United  States.  Another  estimate  made  by  the  Bank  of 
Venezuela,  taking  the  month  of  January,  1920.  as  an  average, 
showed  that  about  50  per  cent  of  the  business  transactions 
passing  through  their  hands  for  that  month  was  similarly  com- 
pleted. It  may  be  observed  that  this  bank  is  the  largest  and 
best  recognized  national  bank  in  Venezuela. 

From  these  two  estimates  we  may  draw  the  conclusion  that 
the  foreign  branch  banks  handle  more  checks  than  the  old 
established  native  banks  of  the  country,  due  to  the  fact  that 
foreign  firms  in  Venezuela  use  a  greater  amount  of  checks  than 
the  native  dealers.  But  since  business  with  the  interior  of  the 
country  comprises  about  one-half  the  commerce  of  Venezuela, 
we  should  divide  our  estimates  and  conclude  that  between  25% 
and  37%,  (31%  mean  average)  is  the  proportion  of  checks  used 
in  the  commerce  of  Venezuela. 

The  system  of  clearing  these  checks  is  the  same  as  was  formerly 
the  custom  of  the  United  States,  before  the  days  of  the  clearing 
house.  The  banks  of  the  interior  are  all  branches  of  the  four 
main  banks  of  Venezuela.  They  handle  very  few  checks  but 
when  occasion  arises  send  them  to  the  main  offices  for  final 
settlement.  Each  day  the  banks  gather  their  checks  together 
and  send  them  by  messenger  to  the  respective  institutions  on 
which  they  are  drawn.  In  this  manner  the  clearing  takes 
place,  currency  being  exchanged  to  settle  balances.  The  size 
of  the  country  and  the  proportion  of  checks  used  does  not 
necessitate  a  clearing  house. 

LAWS    REGARDING   COMMERCIAL    PAPER 

Article  No.  2  of  the  National  Stamp  Tax  Law,  drawn  up  by 
the  Congress  of  the  United  States  of  Venezuela  in  conference 
assembled  in  the  year  1915  decrees: 


Venezuela  Report  113 

"Will  be  subject  to  a  national  tax  of  stamps,  all  documents  or 
writings  which  relate  to  things,  services,  laws  or  legal  proceed- 
ings, whose  value  is  estimated  or  determined,  that  circulate 
within  the  interior  of  the  Republic,  or  that  are  expedited  for 
foreign  use." 

"This  tax  will  be  collected  with  the  following  tariff: 

Bs.  25  to        50 Bs.  0.05 

"  51  "      100 "  0.10 

"  101  "      200 "  0.20 

"  201  "      300 "  0.30 

"  301  "      400 "  0.40 

"  401  "      500 "  0.50 

"  501  "  1,000 "  1.00" 

DRAFTS    AND    BILLS    OF    EXCHANGE 

Drafts  and  Bills  of  Exchange  used  in  Venezuela  may  be  classi- 
fied and  considered  with  reference  to  the  following  headings: 
International  Trade  and  Domestic  Trade. 

We  shall  first  consider  the  drafts  used  in  foreign  exchange. 
In  most  countries  they  may  be  classified  as  "clean  bills"  of 
exchange,  and  "documentary  bills,"  i.e.  those  accompanied  by 
bills  of  lading  (full  sets),  invoice  copy  and  insurance  certificates. 
But  this  is  not  so  in  Venezuela,  as  according  to  the  Banking 
Law  of  1919  all  drafts  on  Venezuela,  in  order  to  be  collectible  ' 
must  have  documentary  evidence  attached.  At  the  termination 
of  the  late  war  many  anxious  dealers  in  North  America  shipped 
goods  to  Venezuelan  firms,  as  a  rule  forwarding  a  draft  to  a 
local  consul  or  bank  for  collection,  only  to  find  that  it  was  use- 
less without  documents  attached.  Hence,  if  the  merchant  to 
whom  the  goods  were  sent  chose  to  be  dishonest,  he  might  obtain 
the  goods  from  the  docks  and  sell  them,  and  not  be  held  responsi- 
ble by  law.  Although  this  has  very  seldom  occurred,  it  is  always 
a  wise  measure  for  the  drawer  of  a  draft  on  Venezuela  to  acquaint 
himself  with  the  banking  laws  of  that  country. 

Another  noticeable  matter  of  considerable  importance  is  the 
difference  between  the  drafts  drawn  on  Venezuelan  merchants 
by  American  houses  and  those  drawn  by  European  houses.  It 
is  a  commonly  understood  and  most  regrettable  fact  that  the 
time  on  drafts  from  the  United  States  do  not  exceed  ninety 
days,  while  those  from  European  countries,  especially  England, 


114  School  of  Foreign  Service 

will  bear  six  months'  time.  This  fact  was  brought  to  the 
attention  of  the  writer  by  the  Chamber  of  Commerce  and  by 
every  representative  of  banks,  both  American  and  Venezuelan, 
with  whom  he  consulted.  The  Republic  has  expressed  its 
desire  to  maintain  and  increase  the  present  trade  with  North 
America  but  it  demands  the  same  credit  from  Americans  as  is 
granted  by  European  merchants.  To-day  we  live  in  an  age  of 
credit,  and  Venezuela  must  have  that  credit  in  order  to  develop 
her  commerce. 

From  the  law  quoted  herein  it  will  be  seen  that  all  drafts  on 
Venezuela  are  subject  to  a  graduated  stamp  tax  ranging  from 
.05  bolivares  for  drafts  valued  at  25  to  50  bolivares  up  to  one 
bolivar  for  drafts  valued  at  from  500  to  1,000  bolivares. 
''"Foreign  drafts  in  Venezuela  are  always  drawn  in  duplicate 
(first  of  exchange  and  second  of  exchange),  each  being  forwarded 
by  different  steamers  to  insure  safety,  one  becoming  void  when 
the  other  has  been  paid.  Drafts  may  be  drawn  to  the  order  of 
a  specific  payee,  usually  the  collecting  bank,  or  they  may  be 
drawn  to  the  order  of  the  drawers  or  shippers. 

The  discounting  of  drafts  and  other  bills  of  exchange  has 
developed  greatly  within  the  last  two  years.  Commercial 
liquidation  has  been  made  possible  by  the  buying  and  selling 
of  drafts  in  all  parts  of  the  country  at  the  same  price.  Funds 
have  been  transmitted  by  telegraph  to  places  where  the  sending 
of  specie  would  be  extremely  costly.  Commissions  range  from 


"  Recently  there  has  been  established  by  private  enterprise 
that  type  of  bills  of  exchange  bearing  8%  annual  interest,  or  one 
per  cent  less  than  the  current  interest,  at  which  wholesale 
dealers  discount  the  invoices  of  their  sales  in  the  interior.  This 
important  branch  of  banking  has  been  in  operation  for  about 
two  years  and  it  has  been  noticed  that  the  system,  in  spite  of 
the  short  time  in  existence,  has  gained  firm  foothold  and  been 
generally  adopted.  The  operations  which  have  been  carried 
on  by  the  Bank  of  Venezuela  in  this  branch  show  the  following 
results  r1 


1Report  of  Inter  American  High  Commission,  1919 


Venezuela  Report  115 

Year  Semester  Amount 

1917  2  Bs.      368,430.53 

1918  1  752,118.52 

1918  2  967,516.32 

1919  1  1,243,576.79 

As  may  be  seen  from  these  figures  the  results  have  been  satis- 
factory, and  the  system  has  also  produced  still  greater  results 
in  the  development  of  the  commerce  of  the  Republic. 

As  is  natural,  the  foreign  banks  recently  founded,  have  also 
discounted  these  acceptances  of  commerce  and  it  is  hoped  that 
with  their  great  influence  and  the  cooperation  of  the  banks  of 
Venezuela,  this  method  will  continue  to  grow  in  use. 

The  handling  of  drafts  is  at  the  present  day  perhaps  the  most 
important  dealing  in  commercial  paper  observable  in  the  banks 
of  the  country. 

TRADE   ACCEPTANCES 

As  expressed  in  the  circular  of  Feb.  8,  1915,  it  is  the  opinion 
of  the  Federal  Reserve  Board  that:  "the  acceptance  is  still  in 
its  infancy  in  the  field  of  American  banking.  How  rapid  its 
development  will  be  can  not  be  foretold  but  the  development 
itself  is  certain." 

The  Federal  Reserve  Board  in  its  circular  of  July  15,  1915, 
defines  the  term  "trade  acceptance":  "A  bill  of  exchange — 
drawn  to  order,  having  a  definite  maturity  and  payable  in 
dollars  in  the  United  States,  the  obligation  to  pay  which  has 
been  accepted  by  an  acknowledgment,  written  or  stamped,  and 
signed,  across  the  face  of  the  instrument,  by  the  company  or 
firm,  corporation  or  person  upon  whom  it  is  drawn;  such  agree- 
ment to  be  to  the  effect  that  the  acceptor  will  pay  at  maturity, 
according  to  its  tenor,  such  draft  or  bill  without  qualifying 
conditions."  An  acceptance,  therefore,  may  rightly  be  called 
a  time  bill  of  exchange  which  passes  from  hand  to  hand  like 
money. 

This  acceptance  differs  from  what  is  commonly  termed  such 
in  Venezuela  and  also  from  drafts.  The  commercial  document 
with  bill  of  lading  attached  commonly  called  an  acceptance  in 
that  country,  may  be  drawn  at  sight,  or  may  be  made  payable 
at  a  certain  time  after  sight.  This  enables  the  title  of  the  goods 
covered  by  the  bill  of  lading  to  remain  vested  in  the  seller,  the 


116  School  of  Foreign  Service 

drawer  of  the  draft,  or  the  person  to  whom  the  bill  of  lading 
may  be  endorsed,  until  the  draft  is  paid.  Another  form  not  in 
common  use  in  Venezuela  is  the  sight  draft  for  collection,  which 
is  drawn  on  buyers  previously  sold  on  open  account.  It  is 
generally  used  as  a  means  of  collection  when  ordinary  means 
have  failed  to  produce  payment.  The  "trade  acceptance,"  on 
the  other  hand,  is  an  acknowledgment  of  obligation  and  a 
promise  to  pay  it  on  a  certain  date. 

'Some  objection  has  been  made  to  trade  acceptances  in  this 
country  on  the  ground  that  the  bidding  of  the  banks  in  the 
market  of  discount,  would  deprive  commercial  houses  of  selling 
their  own  single-name  paper.  It  has  been  proved,  however, 
that  the  sale  of  the  aforesaid  paper  has  in  no  way  been  disturbed 
by  the  introduction  of  acceptances.  All  banks  worthy  of  con- 
sideration have  as  a  rule  surplus  capital  to  invest  and  this  is 
usually  attracted  by  the  commercial  paper  of  responsible  houses. 

The  use  of  trade  acceptances,  therefore,  not  only  does  not 
impede  but  tends  to  increase  the  banking  facilities  of  merchants. 

This  most  important  of  all  commercial  papers  has  yet  to  be 
^adopted  in  Venezuela.  The  first  acceptances  cashed  in  that 
country  were  handled  by  the  local  branch  of  the  National  City 
Bank  of  New  York.  These  acceptances — twenty  in  number — 
were  cashed  during  the  last  week  of  July,  1920.  The  foundation 
has  thus  been  laid  and  it  is  expected  that  their  use  will  grow  in 
such  numbers  that  they  will  eventually  surpass  all  other 
instruments  of  commercial  credit  employed  in  the  country. 

The  present  need  of  the  Venezuelan  public,  of  the  bankers 
and  of  the  nation  as  a  whole  is  the  development  of  the  great 
natural  resources  of  the  land.  This,  obviously,  is  an  enormous 
undertaking  and  requires  from  all  the  nations  with  whom  Vene- 
zuela has  business  dealings,  especially  from  the  United  States, 
credit.  And  by  what  means  can  that  credit  be  more  satisfac- 
torily granted  than  in  that  form  wherein  each  party  reaps  a 
real  benefit,  by  the  instrument  known  as  "trade  acceptance''? 

Nelson  Hopkins. 


Venezuela  Report  117 


COMMERCIAL  TRAVELERS  IN  VENEZUELA 

The  importance  of  commercial  travelers  not  only  as  repre- 
sentatives of  business  concerns,  but  also  as  types  of  a  given 
nationality,  has  at  last  been  realized  and  they  are  being  treated 
as  important  factors  not  to  be  overlooked  by  corporations  or 
the  nation  in  the  formulation  of  trade  policies.  They  are  the 
spokesmen  of  their  countries  and  from  their  lips  and  by  their 
actions  a  nation  is  sometimes  judged  not  only  from  a  business 
but  also  from  a  political  standpoint. 

The  importance  of  this  factor  was  realized  but  by  few  nations 
before  the  war,  and  the  nations  fortunate  enough  to  appreciate 
their  importance  readily  provided  means  for  improving  their 
service.  The  United  States  of  Venezuela  and  the  United  States 
of  America  were  among  the  nations  which  had  been  slow  to  realize 
the  benefits  that  could  be  reaped  from  commercial  travelers  for 
their  respective  countries.  However,  once  they  had  realized 
the  necessity,  Venezuela  and  the  United  States  signed  a  treaty, 
effective  July  3,  1920,  which  greatly  benefited  the  travelers  of 
all  countries  and  also  testified  to  the  influence  of  their  service. 

The  convention  also  impressed  upon  the  business  houses  in 
both  countries,  and  demonstrated  the  fact,  that  commercial 
travelers  are  the  criterion  by  which  concerns  and  countries  are 
judged  in  foreign  countries.  Representation  in  overseas 
commerce  requires  men  of  skill  and  character  and  without  these 
two  qualities  no  traveler  can  ever  succeed. 

Venezuela  is  one  of  the  best  fields  in  South  America  for  com- 
mercial travelers,  as  the  nation  is  very  rich  and  has  a  high  stand- 
ing in  the  financial  world.  The  natural  resources  are  innumer- 
able and  rich,  as  can  be  readily  realized  from  the  number  of 
countries  competing  for  investments  and  monopolies  at  the 
present  time.  The  large  amount  of  money  in  circulation  and  the 
importance  of  Venezuelan  markets  in  the  export  trade  has 
encouraged  export  houses  throughout  the  world  to  send  repre- 
sentatives to  study  conditions  and  eventually  place  their  prod- 
ucts in  that  market. 

In  order  for  commercial  travelers  to  rightfully  represent  their 
principals  they  must  be  fully  acquainted  with  climatic,  political 


118  School  of  Foreign  Service 

and  legal  conditions  in  Venezuela.  The  legal  requirements  for 
commercial  travelers  are  few  and  by  far  less  stringent  than  the 
laws  of  other  Latin-American  countries.  Commercial  travelers 
coming  to  Venezuela  are  not  required  by  law  to  present  any 
document  other  than  their  passports.  No  power  of  attorney  is 
necessary,  but  it  is  advisable  to  have  it  in  case  it  should  be 
required  in  business  transactions.  A  letter  from  the  home  office 
of  the  traveler  or  from  some  well  established  exporting  or 
importing  house  is  not  necessary  but  advisable  as  a  medium  of 
introduction  to  the  prospective  buyers. 

The  recent  convention  signed  between  the  United  States  of 
Venezuela  and  the  United  States  of  America  has  slightly 
changed  previous  customs.  The  object  of  the  convention  was 
that  both  countries  might  encourage  commercial  relations  and 
increase  business  by  facilitating  the  activities  of  commercial 
travelers.  The  convention  provided  for  a  license  in  both  coun- 
tries but  as  yet  that  provision  of  the  convention  has  not  been 
complied  with  and  the  prospects  are  that  the  old  custom 
requiring  no  licenses  will  remain  in  effect. 

There  are  no  baggage  restrictions,  but,  as  the  means  of  travel 
are  limited  in  some  parts  of  the  country,  it  is  advisable  that  the 
traveler  confine  his  baggage  to  as  small  a  trunk  as  possible. 

In  customs  treatment  of  samples  it  is  necessary  to  follow  the 
provisions  of  the  recent  convention: 

1.  All  samples  which  have  no  commercial  value  shall  be  admitted  free 
of  duty. 

2.  All  samples  shall  be  considered  without  value  when  they  are  stamped 
or  rendered  unusable. 

3.  Merchandise  having  commercial  value  shall  be  admitted  provisionally, 
security  having  first  been  given  for  the  customs  duties  and  with  the  under- 
standing that  they  leave  the  county  within  a  period  of  six  months. 

4.  Duties  shall  be  paid  on  that  part  which  shall  not  be  exported. 

Means  have  been  provided  at  all  principal  ports  in  Venezuela 
for  the  immediate  clearance  of  samples  so  as  not  to  delay  the 
commercial  travelers.  Samples  usually  receive  consideration 
immediately  after  personal  baggage  and  in  some  cases  they  are 
first. 

In  connection  with  advertising  matter  it  is  interesting  to  note 
that  catalogues  are  admitted  free;  but  the  term  is  strictly  con- 
strued. Pamphlets  and  advertising  matter  in  general,  including 


Venezuela  Report  119 

calendars,  are  dutiable  at  $1.37  per  hundred  pounds  gross 
weight.  Advertising  matter  with  lithographed  or  printed 
designs  not  bearing  the  name  and  legend  of  the  advertiser  is 
dutiable  at  $17.13  per  hundred  pounds  gross  weight. 

Practically  all  exporting  countries  are  transacting  business 
with  Venezuela  at  the  present  time.  America  ranks  first  with 
Spain  and  England  second  and  third  respectively.  Competit- 
tion  is  keen,  due  to  the  fluctuation  of  the  foreign  exchange  and 
the  manufacture  of  goods.  The  American  commercial  travelers 
are  excellent  salesmen  and  thoroughly  understand  their  products. 
The  appearances,  personalities  and  ways  of  the  Americans  are 
very  popular  in  Venezuela,  but  the  English  and  German  travel- 
ers are  very  efficient  and  have  considerable  influence. 

Before  a  commercial  traveler  can  successfully  sell  goods  in 
Venezuela  he  must  understand  Spanish.  It  is  necessary  to 
know  not  only  the  words  but  also  the  construction  of  the 
language.  Many  commercial  travelers  have  failed  in  their 
attempts  to  sell  goods  due  to  the  fact  that  they  possessed  only 
slight  knowledge  of  the  language,  which  is  not  alone  a  fault  of 
the  travelers  but  also  of  the  houses  they  represent.  The  Ger- 
man nation  was  the  first  to  realize  that  the  knowledge  of  Span- 
ish was  indispensable  to  commercial  travelers;  knowing  that 
this  essential  was  the  basis  of  business  success  in  South  America, 
the  various  German  concerns  prior  to  the  war  established 
schools  where  they  instructed  their  agents  in  the  language  and 
customs  of  the  countries  to  which  they  were  to  be  sent.  Offices 
were  opened  in  the  principal  cities  of  various  countries  and 
agents  sent  to  them  where  they  remained  for  fully  a  year  learn- 
ing the  business  customs  and  language,  and  after  mastering  both 
they  were  given  positions  as  commercial  travelers.  Conse- 
quently the  Germans  successfully  entrenched  themselves  in 
numerous  countries  and  were  enabled  to  compete  with  every 
advantage  in  export  trade.  But  many  American  travelers  have 
neglected  to  learn  Spanish,  preferring  to  talk  their  own  language 
whenever  possible. 

The  national  customs  of  Venezuela  are  naturally  different 
from  those  of  the  United  States  and  other  countries.  Business 
customs,  too,  are  different  and  so  are  the  customs  of  the  home. 
It  is  easy  to  become  used  to  them  and  one  must  know  them  in 
order  to  transact  business.  In  some  parts  of  the  country 


120  School  of  Foreign  Service 


business  would  seem  to  be  a  secondary  consideration,  social  life 
ranking  first,  which  of  course  is  contrary  to  the  habits  of  thought 
in  the  United  States  and  many  European  countries. 

It  is  advisable,  too,  that  we  consider  the  variations  in  climatic 
conditions  in  Venezuela  and  the  effect  of  such  conditions  on  the 
demand  for  goods  in  general.  In  order  intelligently  to  under- 
stand the  situation  it  will  be  necessary  to  know  the  climatic 
features  of  each  important  city. 

Caracas,  the  capital  of  Venezuela,  has  a  splendid  climate, 
invigorating  and  refreshing,  somewhat  similar  to  that  of  Los 
Angeles,  California.  The  days  are  rather  cool  with  the  excep- 
tion of  mid-day  which,  of  course,  is  very  warm.  Light-weight  cloth- 
ing is  worn  during  the  day  while  at  night  medium-weight  clothing 
is  preferable.  As  Caracas  is  the  capital,  there  is  a  steady  demand 
there  for  fashionable  clothing.  Aside  from  clothing,  many  other 
products  are  in  demand  such  as  drygoods,  machinery  of  all 
descriptions,  autos,  hardware,  etc.  The  same  products  are 
generally  needed  in  all  other  cities.  The  intensity  of  the  heat  in 
Valencia,  Maracaibo,  Maracay  and  Ciudad  Bolivar  allows  only 
light-weight  clothing  to  be  worn. 

Commercial  travelers  should  acquaint  themselves  with  con- 
ditions in  all  cities  and  must  carefully  study  the  demands  for 
their  products.  The  market  for  machinery  is  greater  in  Caracas 
than  any  other  city  in  Venezuela.  The  demand  for  farming 
implements  is  greater  in  Valencia  than  elsewhere.  Mining 
machinery  is  needed  in  Maracaibo  and  surrounding  cities  where 
the  various  mines  are  located.  Dry  goods  are  in  demand 
throughout  the  country  districts.  Regardless  of  the  size  of  the 
city  one  can  find  American  goods  everywhere.  The  quality  of 
the  goods  outranks  that  of  other  countries  and,  moreover,  there 
is  a  strong  feeling  of  friendship  on  the  part  of  the  Venezuelans  in 
favor  of  America  and  American  goods. 

One  of  the  frequent  complaints  uttered  to  American  com- 
mercial travelers  is  directed  against  American  methods  of 
packing  goods  for  shipment.  During  the  last  two  years  the 
majority  of  American  exporting  houses  sending  goods  to  South 
America  have  neglected  proper  packing  with  the  result  that  the 
goods  are  often  received  in  woefully  poor  condition.  Although 
a  small  item,  it  is  of  prime  importance  from  the  standpoint  of  the 
importer  and  a  hindrance  to  the  success  of  commercial  travelers. 


Venezuela  Report  121 

We  have  enumerated  the  legal  requirements  and  personal 
duties  of  commercial  travelers  and  have  also  mentioned  the 
market.  It  will  be  helpful  to  point  out  the  means  of  transpor- 
tation and  communication  in  Venezuela.  Companies  that  have 
never  sent  commercial  travelers  to  Venezuela  have  a  wrong 
impression  as  to  the  means  of  communication  and  transportation. 
The  roads  are  excellent  and  in  some  cases  surpass  those  in  the 
United  States  and  other  countries.  The  railroads,  although  not 
as  modern  as  the  roads  in  the  United  States  or  Europe,  are  well 
capable  of  carrying  passengers  and  freight  up  and  down  the 
high  mountains.  In  some  cases  in  Venezuela,  a  train  will 
ascend  from  sea  level  to  an  altitude  of  12,000  feet.  There  is 
herewith  submitted  a  complete  list  of  the  railroads,  showing 
destinations  and  number  of  stations.  There  is  also  attached  a 
complete  list  of  the  roads  showing  distances  between  principal 
cities  en  route,  the  outline  further  showing  the  altitude  of  each 
city. 

[Railroad  facilities  may  be  found  enumerated  on  pp.  69-70.] 
The  following  list  of  the  roads  and  highways  in  Venezuela 
show  the  distances  between  cities  and  the  altitudes  of  the  respec- 
tive highways: 

HIGHWAY  FROM  CARACAS  TO  VALENCIA 

Distance  (Kilometers)     Altitude  (Meters] 

Caracas  (Plaza  Bolivar) 0  920.00 

Antimano 9.30  937.00 

LosAdjuntas 14.10  970.00 

Les  Teques 24.30  1,168.00 

Los  Teques  (Llano  de  Miquilen) 25.30  1,172.00 

Guayas 44.30  470.00 

Las  Tejerias 46.80  500.00 

ElConsejo 57.50  576.00 

La  Victoria 65.60  576.00 

San  Mateo 75.20  479.00 

Turmero 83.70  564.00 

Maracay 97.90  .       450.00 

Sanjoaquin 113.70  440.00 

Guacara 122.80  430.00 

Los  Guayos 141.30  440.00 

Valencia .  148.80  470.00 


122                   School  of  Foreign  Service 

HIGHWAY  FROM  CARACAS  TO  LA  GUAIRA 

Caracas  (Plaza  Bolivar) 0  920.( 

Agua  Salud 2.50  935.00 

Catia 4.00  960.00 

Blanden 7.15  839.00 

Cantinas 9.23  871.00 

Pauji 15.20  1,004.00 

Las  Trincheras 16.26  941.00 

El  Copey 19.70  770.00 

Civucutti 26.38  475.00 

Manonga 29.38  21 5.00 

Marquetia..... 32.38  40.00 

La  Guaira 34.78  8.00 

HIGHWAY  FROM  CARACAS  TO  GUATIRO 

Caracas  (Plaza  Bolivar) 0  920.00 

Quebrada  Honda 3.15  880.00 

Sabana  Grande 4.15  870.00 

Chacaito 4.90  860.00 

Los  Ravelos 5.90  870.00 

Chacao 6.90  880.00 

Los  Dos  Caminos 9.25  860.00 

Petare  (Plaza) 12.50  840.00 

La  Cortada  del  Respiro 18.00  960.00 

Quintana 23.00  761.00 

Caucaquita 25.00  690.00 

El  Agaucate 26.50  641.00 

Ochoa..... 29.80  563.00 

Mampete 35.00  489.00 

ElCercado 38.50  443.00 

El  Tamarindo 39.70  425.00 

Guarenas 45.35  396.00 

Guatire 52.35  335.00 

HIGHWAY  FROM  CARACAS  TO  OCUMARE  DEL  TUY 

Caracas  (Plaza  Bolivar) 0  920.00 

Puento  de  Hierro  sobre  el  Guairel 1 .75  879.00 

El  Valle  (Plaza) 5.35  889.00 

Coche 8.55  901.00 

Bermudez 10.25  920.00 

Gato  Amarillo 11.65  908.00 

Bejarno 14.15 

Prim 16.75  1,005.00 

Cortado  del  Guayabo 18.15  1,150.00 

Maitana 24.65  1,229.00 

Maturin 36.50  669.00- 


Venezuela  Report 


123 


Buena  Vista 38.20  736.00 

Charallave 41 .50  692.00 

Cantarrana 52.00  307.00 

Vallecito 61 .50  210.00 

Ocumare  del  Tiiy 70.20  210.00 

HIGHWAY  FROM  MARACAY  TO  OCUMARE  DE  LA  COSTA 

Maracay  (Alcabala) 0  425.00 

El  Diamente 22.30  431.00 

El  Limon 5.30  453.00 

LaQuesera 6.00  460.00 

Guamitas 14.00  720.00 

Guacamauyas 17.40  871.00 

Piedra  de  Tranca 22.00  1,045.00 

Rancho  Grande 23.00  1,085.00 

El  Portachuelo 24.00  1,120.00 

Periquito 30.00  845.00 

El  Salto :. 34.00  660.00 

Tio  Julian 39.00  405.00 

La  Tulla. 44.30  143.00 

Cansa  Macho 45.00  123.00 

Aponto 47.00  88.00 

Pueblo  Nuevo._ .-. 52.60  40.00 

Ocumare  de  la  Costa 53.30  30.00 

Caserio  de  la  Boca 57.90  3.00 

Puerto  de  Ocumare  de  la  Costa._ 58.70  2.00 

HIGHWAY  FROM  LLANO  CAGUA  TO  SAN  FERNANDO  DE  APURE 

Cagua 0  472.00 

Ciudad  de  Cura 20.00  556.00 

San  Juan  de  los  Morros 45.00 

Uverito 76.00 

Parpara 83.00  556.00 

Ortiz 94.00 

Los  Dos  Caminos... 100.00 

Morrocoyes 120.00 

El  Rastro 153.00 

Calabozo 175.00 

San  Fernando  Apure 334.00  73.00 

HIGHWAY  FROM  VALENCIA  TO  PUERTO  CABELLO 

Valencia  (Plaza  BoKvar). 0  470.00 

Camoruco 1 .00  478.00 

Mayuanagua._ 7.80  490.00 

El  Retobo 9.80 

Barbula 12.30 

La  Entrado 15.30  595.00 

Las  Trincheras....  20.80  360.00 


124 


School  of  Foreign  Service 


El  Cambur 30.80  70.00 

Taborda 40.30 

El  Palito 42.30  3.00 

Puerto  Cabello  (Plaza)  53.60  1.00 

HIGHWAY  FROM  VALENCIA  TO  NIRGUA 

Valencia  (Plaza  Bolivar) 0  470.00 

Bejuma 52.25  662.00 

Miranda 69.50  625.00 

Salorn... 85.25  768.00 

Nirgua 100.50  793.00 

HIGHWAY  FROM  VALENCIA  TO  SAN  CARLOS 

Valencia  (Plaza  Bolivar) 0  470.00 

Tocuyito 17.00  450.00 

Tinaquello 50.00  423.00 

ElTinaco 78.75  143.00 

San  Carlos 98.75  150.00 

HIGHWAY  CENTRAL  FROM  THE  TACHIRA  TO  SAN  CRISTOBAL 

Estacion  Tachira  del  Gran 0  370.60 

Colon..... 18.00  800.00 

Angostura  del  Lobaterita 27.30  815.00 

Galtineros , 34.56  1,150.00 

Putachulo  de  la  Paja 38.58  1,257.00 

Palo  Grande 55.20  1,525.00 

San  Cristobal 76.20  825.00 

HIGHWAY  FROM  CUMANA  TO  CUMANACOA  (!N  CONSTRUCTION) 

Cumana 0  16.00 

Puerto  de  la  Madera 7.00  45.00 

Los  Ipures 12.00  105.00 

Mochima 20.00  121.00 

Cedeno 36.00  1 66.00 

San  Fernando 48.00  212.00 

Rio  Arenas 52.00  215.00 

Cumanacoa 56.00  230.00 

HIGHWAY  FROM  BARQUISIMETO  TO  EL  TOCUIYO 

Barquisimeto 0  556.00 

Quibor 39.00  720.00 

ElTocuiyo 69.00  617.00 

HIGHWAY  FROM  EL  PAO  TO  BARINAS 

El  Pao 0  160.00 

San  Carlos 57.12  150.00 

Acarigua....                                        .  133.12  186.00 


Venezuela  Report 


125 


Ospino 179.74  184.00 

Guarne 230.75  183.00 

Barinas 318.15  180.00 

HIGHWAY  FROM  CHARALLAVE  TO  SAN  CASIMIRO 

Charallave 0  307.00 

Cua 13.00  240.00 

San  Casimiro 39.50 

HIGHWAY  FROM  SAN  FERNANDO  DE  APURE  TO  SAN  JUAN 

San  Fernando 0  730.00 

Achaguas 78.12  83.00 

San  Juan 141.25 

HIGHWAY  FROM  SAN  FELIX  TO  TURMERO 

San  Felix 0  20.00 

Apata.__ 57.50  293.00 

Guasipato 160.00 

Turmero 220.00 

HIGHWAY  FROM  CORO  TO  CUMAREBO 

Coro 0  1,798.00 

La  Vela 15.00  120.00 

Cumarebo 43.00  13.00 

HIGHWAY  FROM  BARQUISIMETO  TO  CARORA 

Barquisimeto 0                   566.00 

Banco  de  Baragua 45.00 

Rio  Tocuyo 86.00 

Carora 116.00                  409.90 

HIGHWAY  FROM  TURJILLO  TO  MOTATAN 

Turjillo 0  800.00 

LaPlazuela 4.00  592.00 

Pampanito 14.00  385.00 

Motatan 36.00  324.00 

HIGHWAY  FROM  BARCELONA  TO  SOLEDAD 

Barcelona 0                     13.00 

Cuataquiche 29.60 

San  Mates 57.60                   153.00 

Aragua  de  Barcelona 102.40                   110.00 

La  Canoa 285.00 

Mouchal._ 308.60 

Campo  a  Legra 332.00 

Soledad -  359.30 


126  School  of  Foreign  Service 

HIGHWAY  FROM  LAS  ADJUNTAS  TO  COLONIA  TOVAR 

Las  Adjuntas 0  970.00 

Macarao 3.00  1,000.00 

Palo  Negro 6.30 

Alto  de  No  Leon 19.30  2,100.00 

Alto  de  Lagrenazo 25.30  2,330.00 

Colonia  Tovar 32.30  1,802.00 

HIGHWAY  FROM  LOLONIA  TO  EL  CONSEJO 

Colonia  Tovar 0  1,802.00 

Portero  Perdido 3.00  1,680.00 

Topo  Carrizalito 9.00  1,910.00 

Caserio  Quebrada 19.00  1,590.00 

El  Consejo 25.00  576.00 

HIGHWAY  FROM  LA  COLONIA  TO  LA  VICTORIA 

Colonia  Tovar 0  1,802.00 

Alto  de  Launita 5.50  1,680.00 

Alto  Gabante 10.00  1,910.00 

El  Pinto 20.00  1,756.00 

Hacienda..... , 22.00 

Hacienda  Sabaneta 23.40  600.00 

La  Victoria 27.90  576.00 

The  charge  for  freight  on  the  railroads  is  rather  high,  $.58  per 
hundred  pounds,  and  the  passenger  rate  averages  lOc.  per  mile. 
Hotel  accommodations  are  not  scarce  nor  are  they  excessive  in 
prices.  Statistics  show  that  European  commercial  travelers  can 
live  on  $3.50  to  $4.00  per  day  while  it  costs  the  average  American 
$7.00  per  day.  The  hotels  are  not  as  modern  as  in  the  States 
but  are  very  clean  and  suitable.  The  food  is  exceptionally 
good  and  wholesome. 

The  means  of  transportation  by  automobiles  are  as  modern  as 
those  of  some  of  the  largest  cities  of  the  world.  The  majority 
of  the  cars  are  high  priced  and  high  powered  as  they  are  designed 
to  climb  to  high  altitudes  in  the  surrounding  mountains. 

It  may  be  stated  that  the  financial  condition  of  Venezuela  is 
superior  to  that  of  any  other  country  in  Latin-America  with  the 
exception  of  Argentina.  Her  public  debt  has  been  decreased 
and  her  financial  standing,  although  established  comparatively 
few  years  ago,  is  very  high. 

Germany,  France  and  England  prior  to  the  war  practically 
had  a  monopoly  on  the  Venezuelan  trade,  due  largely  to  the  long 
credits  offered  by  them  to  the  Venezuelan  merchants.  Before 


Venezuela  Report  127 

the  war  the  above  mentioned  countries  extended  credit  from 
four  to  nine  months.  The  policy  has  changed  now  and  the 
merchants  are  satisfied  with  from  three  to  four  months'  credit. 
The  reduction  of  the  long  term  credit  is  also  due  to  improved 
banking  methods,  and  it  is  expected  that  trade  will  soon  reflect 
the  change  when  conditions  are  settled. 

At  the  present  time  many  of  the  exporting  houses  in  the 
United  States  are  dealing  on  either  a  90  day  sight  draft  or  a  120 
day  draft  dated  New  York.  This  system  has  been  approved  by 
the  Credit  Association  of  America. 

Since  practically  every  exporting  or  importing  country  is 
represented  in  Venezuela  at  the  present  time  by  bank  affiliation, 
the  average  commercial  traveler  encounters  very  little  difficulty 
in  having  his  drafts  or  letters  of  credit  honored.  The  difference 
in  rate  of  exchange  is  an  important  item  and  should  be  carefully 
considered  by  all  commercial  travelers  upon  arriving  in  Vene- 
zuela. The  exchange  fluctuates  slightly,  the  rate  now  being 
$5.35.  The  standard  of  value  is  the  bolivar,  valued  at  $.193, 
American  gold. 

One  of  the  most  exasperating  difficulties  confronting  all  com- 
mercial travelers  is  their  ignorance  of  the  metric  system.  The 
system  has  always  been  in  effect  here  and  must  be  learned  in 
order  to  transact  business. 

The  customs  duties  of  Venezuela  are  very  high,  more  so  than 
in  many  other  Latin-American  countries.  The  high  protective 
tariff  has  been  a  means  of  increasing  the  revenue  of  the  country 
but  on  the  other  hand  it  has  made  it  practically  impossible  for 
the  poorer  classes  of  Venezuela  to  purchase  foreign  made  goods. 
Another  purpose  of  the  high  protective  tariff  is  to  protect  home 
industries  but  the  fact  remains  that  the  manufacturers  in  Vene- 
zuela can  not  supply  the  demand.  In  many  cases  the  tariff  is  so 
high  that  it  is  inadvisable  for  outside  merchants  to  attempt  to 
do  business  there.  For  example,  it  would  be  very  poor  business 
judgment  for  a  shoe  salesman  to  attempt  to  sell  shoes  in  Vene- 
zuela as  that  industry  is  well  protected  by  the  tariff.  The  same 
applies  to  many  other  industries.  Appeals  have  been  made  to 
the  Venezuelan  government  to  lower  the  tariff  but  as  yet  it  has 
not  complied  with  the  request.  Tobacco  is  another  protected 
industry.  American  cigarettes  in  Venezuela  retail  for  as  much 
as  three  times  the  price  in  the  States.  The  reduction  of  the 


128  School  of  Foreign  Service 

tariff  will  open  a  greater  field  for  all  commercial  travelers  and 
will  mean  an  increased  foreign  trade  for  Venezuela. 

Before  concluding  this  report  it  may  be  useful  to  say  a  word 
regarding  the  present  opportunities  for  commercial  travelers  in 
Venezuela  and  the  attitude  of  merchants  in  that  country  as  to 
American  travelers.  The  writer  has  visited  Maracay,  Caracas, 
Valencia  and  La  Victoria,  and  after  talking  with  business  men 
reached  the  conclusion  that  American  commercial  travelers  are 
considered  among  the  best  and  are  most  welcome.  The  only 
complaints  heard  were  that  American  concerns  would  not  allow 
more  than  a  three  months*  credit  and  that  the  packing  of  goods 
for  shipment  has  been  deplorable.  The  Englishman  with  his 
great  variety  of  goods  such  as  woolens,  cottons,  crockery  and 
with  facilities  for  long  credit  has  gained  the  confidence  of  the 
merchants  and  has  built  up  considerable  trade  throughout  the 
country.  Germany  prior  to  the  war  also  had  considerable  trade 
with  Venezuela  due  to  their  banking  facilities  and  diversity  of 
products.  Before  the  war,  for  example,  Germany  had  a  monop- 
oly on  the  dye  industry  and  the  toy  industry  and  was  thus  able 
to  establish  herself  successfully  in  Venezuela.  American  busi- 
ness houses  prior  to  the  war  had  not  realized  the  importance  of 
Venezuelan  trade  until  the  establishment  of  the  International 
High  Commission,  an  organization  which  has  brought  South 
America  and  North  America  into  closer  contact  and  thus 
assured  friendly  relations. 

The  old  proverb  has  it  that  "Commercial  travelers  are  here 
to-day  and  away  to-morrow. "  As  the  proverb  is  undoubtedly 
true,  the  onl>  way  to  leave  a  favorable  impression  with  a  1  is  to 
smile,  be  courteous,  considerate  and  clean,  not  only  in  business 
transactions  but  in  morals  as  well.  The  possession  and  exer- 
cising of  these  social  qualities  will  be  of  inestimable  advantage 
not  only  to  commercial  travelers  but  to  the  good  name  of  the 

United  States. 

W.  J.  Donnelly. 


Venezuela  Report  129 


PRESENT  FOREIGN  INVESTMENTS  IN  VENEZUELA 

AND 
FUTURE  OPPORTUNITES   FOR  AMERICAN  CAPITAL 

PART  I 

PRESENT  FOREIGN  INVESTMENTS  IN  VENEZUELA 
In  a  report  on  foreign  investments  in  Venezuela,  the'^public 
debt,  at  least  the  external  foreign  debt,  ought  not,  perhaps,  be 
included  as  an  investment.  For  two  reasons,  however,  it  deserves 
consideration,  first,  because  of  the  sum  involved  and  the  manner 
in  which  the  government  meets  this  obligation;  and  secondly, 
as  a  barometer  of  other  nationals'  interests  in  Venezuela. 

PUBLIC    DEBT 

The  public  debt  of  Venezuela  is  a  topic  important  enoughjin 
itself  to  warrant  consideration  in  a  special  report,  hence  we  shall 
concern  ourselves  here  solely  with  the  external  foreign  debt.  Its 
history  is  interesting  but  long  and  involved  and  since  our  interest 
as  far  as  this  report  is  concerned  is  not  in  the  debt  itself  butnn 
the  debt  as  a  factor  in  influencing  investments  in  Venezuela,  we 
shall  confine  ourselves  solely  to  a  statement  of  the  following 
statistics  from  the  Report  of  the  Minister  of  Finance:1 

June  30, 1919     December  31, 1919 

1.  Deuda  Nacional  del  3%  an- 

nual por  Convenios  Diplo- 

maticos.....  Bs.    9,208,291.61     Bs.   9,088,291.61 

2.  Certificados  Provisionales 

(Espanoles) 1,600.00  1,600.00 

3.  Deuda  Diplomatics  del  3% 

annual     de    Venezuela, 

Emisi6n  de  1905 84,511,755.00  80,295,615.00 

4.  Deuda    Diplomatica    sin    in- 

teres 23,769.12 

Total Bs.  93,745,41 5.73    Bs.  89,385,506.61 

The  national  debt  of  3%  is  divided  between  France,  Spain 
and   Holland    in    approximately    the    following   proportions: 
France,  86%,  Holland,  11%  and  Spain,  3%. 

1Cuenta  de  Gastos  del  Departmento  de  Hacienda,  July  1, 1919,  and  January  1, 
1920. 


130  School  of  Foreign  Service 

The  second  item  of  1,600  bolivares  is  held  in  the  Venezuelan 
Treasury  pending  a  settlement  as  to  whom  the  debt  should  be 
paid. 

The  3%  diplomatic  debt  is  held  by  English  and  Germans, 
while  the  diplomatic  debt  without  interest  due  to  France  was 
entirely  paid  at  the  expiration  of  December,  1919. 

The  obvious  conclusion  to  be  drawn  directly  from  the  above 
statistics  is  that  Venezuelan  public  finance  is  in  good  hands  and 
that  the  country  is  in  a  flourishing  condition  as  witnesses  a 
payment  of  nearly  $1,000,000  on  the  foreign  debt  in  six  months. 
Under  such  conditions,  foreign  investors  may  feel  reasonably 
sure  that  capital  may  be  invested  here  both  securely  and 
profitably. 

FOREIGN    BANKS 

Closely  allied  to  the  above  topic  is  the  subject  of  foreign 
banks.  When  foreign  capital  first  finds  its  way  into  a  new 
country  it  is  inevitably  followed  by  a  branch  of  some  large  home 
bank,  a  fact  as  true  in  Venezuela  as  elsewhere.  In  Caracas  we 
find  The  National  City  Bank  of  New  York,  the  pioneer  American 
bank  in  foreign  fields,  serving  not  only  American  firms  but  many 
Venezuelans  in  their  business  dealings  with  the  United  States. 
The  National  City  Bank  made  its  initial  bow  to  the  city  of 
Caracas  in  1917.  American  interests  are  further  represented 
in  Caracas  by  a  branch  of  the  Mercantile  Bank  of  the  Americas 
which  has  a  subscribed  and  paid  up  capital  of  Bs.  2,600,000. 

Canadian  interests  are  represented  in  Venezuela  by  the  Royal 
Bank  of  Canada  with  a  paid-up  capital  of  Bs.  88,400,000  and  a 
reserve  amounting  to  a  like  sum.  English  interests  are  served, 
to  a  great  extent,  by  The  Commercial  Bank  of  Spanish  America, 
Ltd.,  which  is  affiliated  with  the  Anglo-South  American  Bank, 
Ltd.,  and  has  a  capital  and  reserve  amounting  to  Bs.  200,000,000. 
This  is  the  most  recent  foreign  banking  institution  to  appear. 

The  Dutch  have  here  a  branch  bank  of  the  Hollandsche  Bank 
Voor  West-Indie,  which  has  a  subscribed  and  paid-up  capital 
amounting  to  Bs.  2,000,000,  and  lastly  we  have  the  Deschanel 
International  Corporation  de  Venezuela  of  French  origin  which 
has  a  capital  and  reserve  of  Bs.  1,260,000.  Besides  doing  a 
banking  business,  this  corporation  is  itself  interested  in  the 
importing  and  exporting  business.  From  the  above  facts  we 


Venezuela  Report  131 

may  see  that  the  investor  will  not  lack  any  of  the  banking 
facilities  so  essential  in  a  foreign  field. 

PUBLIC   UTILITIES 

Under  the  caption  of  "Public  Utilities"  may  be  considered 
street  railways,  telephones,  telegraph,  gas  and  electric  light  and 
power  companies.  The  English  seem  to  have  a  monopoly  on 
most  of  the  public  utilities  in  Venezuela,  but  whether  or  not  this 
is  an  advantage  either  for  the  English  or  Venezuelans  is  matter 
for  speculation.  One  of  the  leading  American  governmental 
officials  in  Venezuela  on  being  interviewed  by  the  writer  said: 
"Nearly  all  the  public  utilities  are  in  the  hands  of  the  English 
and  I  am  glad  they  are  being  operated  by  English  and  not 
American  companies,  for  the  service  is  poor  and  the  people  are 
discontented."  From  the  writer's  observation,  this  is  indeed 
true  in  the  city  of  Caracas,  for  the  street  railway  company 
(English)  uses  very  ancient  cars,  each  capable  of  holding  only 
twenty-four  people,  and  there  are  turn-outs  about  every  two 
hundred  yards  which  give  the  passengers  opportunity  to  reflect 
on  the  service  while  waiting  for  the  other  car  to  come  along. 
Data  as  to  the  investment  and  earnings  are  lacking  but  as  a  gen- 
eral conclusion  it  may  be  stated  that  there  is  much  room  for 
improvement  in  all  these  fields.  For  example,  the  only  cable  in 
Venezuela  is  in  the  hands  of  a  French  company  and  in  order  to 
send  a  message  to  the  United  States  it  is  necessary  first  to  relay 
it  to  Haiti  and  thence  to  the  United  States  which  occasions 
unnecessary  delay  and  considerable  expense  in  commercial 
transactions.  (See  special  report  on  Radio  Communication.) 

OTHER  INVESTMENTS 

In  Venezuela  it  is  the  ordinary  thing  to  find  American  goods 
on  sale  in  most  of  the  stores  and  agents  for  different  classes  of 
American  goods  throughout  the  country.  These  agencies  are 
mainly  in  the  hands  of  established  Venezuelan  firms  but  in 
Caracas  there  are  fewer  Americans  acting  as  agents  for  many  of 
the  best  known  American  products.  Here  too  is  the  Caribbean 
Petroleum  Company  with  important  oil  and  asphalt  concessions 
along  the  shores  of  Lake  Maracaibo.  For  the  year  1919  the 
output  of  the  company  was  45,913,840  metric  tons  of  oil  on  which 
the  government  receives  a  tax  of  two  bolivares  a  ton.  English 


132  School  of  Foreign  Service 

capital  has  of  late  been  used  increasingly  in  buying  land  in  the 
interior  " llanos,"  for  the  development  of  the  cattle  industry. 
At  the  present  writing  American  capital  is  being  diverted  to  the 
same  purpose,  as,  with  the  development  of  transportation 
facilities,  live  stock  promises  to  be  of  utmost  importance  because 
of  an  increasing  world  population  and  a  greater  demand  for  food. 


PART  II 
INVESTMENT  OPPORTUNITIES  IN  VENEZUELA 

Before  entering  upon  a  discussion  of  the  future  opportunities 
for  investment  in  Venezuela,  two  outstanding  features  need  to 
be  emphasized  as  factors  influencing  the  investing  of  money  in 
Venezuela.  They  are:  1st,  A  realization  of  the  fact  that  Vene- 
zuela needs  immigration  and  needs  it  badly  to  develop  her  rich 
natural  resources,  as  her  population  has  been  almost  at  a  stand- 
still for  the  last  ten  years.  The  other  crying  need  is  foreign,  not 
native,  capital. 

Venezuela,  a  country  larger  than  Germany,  at  present  main- 
tains a  population  estimated  at  2,800,000.  The  greater  pro- 
portion of  the  population  is  found  in  six  or  eight  large  cities  in  the 
north.  Around  the  Orinoco  and  south  of  it  lie  thousands  of 
acres  of  rich  virgin  soil  and,  strange  to  say,  mines  of  coal,  iron, 
copper,  and  gold  which  are  not  worked  due  to  lack  of  transpor- 
tation facilities. 

Here,  then,  lies  the  prime  investment  of  the  country,  a  proper 
system  of  railroads  to  make  these  rich  natural  resources  avail- 
able. These  projects  have  already  been  discussed  widely,  and 
Doctor  Vicente  Lecuna,  President  of  the  Bank  of  Venezuela, 
considered  the  most  prominent  man  in  the  country,  named  rail- 
roads as  the  greatest  need  of  the  country  and  the  best  investment 
for  foreign  capital. 

Here  we  may  be  permitted  to  digress  for  a  moment  to  point 
out  an  unique  advantage  which  Venezuela  holds  in  regard  to 
commerce  with  the  United  States.  Due  to  the  opening  of  the 
Panama  Canal,  Venezuela  can  ship  as  easily  and  quickly  to  the 
western  part  of  the  United  States  as  to  the  eastern  and  thus 
effect  a  considerable  saving  on  trans-shipment  of  goods  by  rail 
across  the  United  States.  Further,  the  proposal  holds  much 


VENEZUELAN  STUDENTS  DEPOSITING  WREATH  BEFORE  STATUE  OF 
GEORGE  WASHINGTON,   CARACAS,  JULY  4,    1920 


GEORGETOWN   STUDENTS    DEPOSITING    WREATH   AT  THE    TOMB   OF 
SIMON   BOLIVAR  IN  THE  PANTHEON,   CARACAS,  JULY  4,   1920 

Facing  p.  133 


Venezuela  Report  133 

favor  here  to-day  for  the  introduction  of  a  steamship  line  to  Saint 
Louis  which  would  be  quicker  and  cheaper  than  the  present  line 
to  New  York.  Thus  we  see  that  three  direct  lines  might  be  main- 
tained from  the  States  to  Venezuela,  one  from  some  western  port 
via  the  Canal,  a  second  from  Saint  Louis  which  would  transport 
the  goods  to  the  Middle  West;  and,  lastly,  an  expansion  of  the 
present  service  from  New  York. 

Here  too  a  word  would  not  be  amiss  relative  to  the  present 
service  from  New  York.  The  Red  D  Line  maintains  a  fleet  of 
four  passenger  ships,  the  largest  being  of  three  thousand  tons 
and  the  time  consumed  from  New  York  to  La  Guaira  usually 
nine  days.  The  need  for  more  and  better  ships  is  obvious. 
With  improved  service,  there  is  no  reason  why  Americans  in 
search  of  a  cool  spot  to  visit  in  the  summer  time  should  not 
come  to  Caracas  situated,  as  it  is,  three  thousand  feet  above 
sea  level  in  a  mountainous  country  and  with  a  wealth  of  that 
beautiful  scenery  found  only  in  the  tropics. 

PROPOSED    RAILROADS 

1 .  San  Felipe  to  Puerto  Cabello. 

The  first  line  to  be  considered  would  run  from  San  Felipe  to 
Puerto  Cabello.  Puerto  Cabello  already  occupies  a  prominent 
place  in  the  economic  life  of  Venezuela,  being  one  of  the  princi- 
pal ports  and  a  port  of  call  for  all  American  and  European 
steamers.  The  proposed  railroad  would  be  approximatley  eighty 
kilometers  in  length  and  would  pass  through  one  of  the  best 
cacao  regions  of  Venezuela.  This  section  is  especially  favored 
due  to  the  trade  winds  which  blow  across  it,  giving  this  locality 
a  special  aptitude  for  the  raising  of  a  superior  brand  of  cacao;  it 
is  from  this  section  along  the  coast  that  the  best  cacao  in  the 
world  comes.  At  present,  due  to  the  lack  of  transportation 
facilities,  it  is  useless  to  develop  the  region,  for  the  product 
can  not  find  its  way  to  market.  A  railroad  here  would  serve 
to  make  available  a  huge,  rich  territory  for  cacao  which  could 
then  find  its  way  into  the  markets  of  the  world. 

2.  San  Cristobal  to  Valencia. 

The  second  proposed  railroad  is  one  from  San  Cristobal  to 
Valencia  passing  by  way  of  Barinas.  Considerable  construe- 


134  School  of  Foreign  Service 

tion  work  would  be  necessary  as  this  line  would  be  about  615 
kilometers  in  length,  through  rich,  fertile  lands  which  at  present 
lie  untouched  due  to  lack  of  communications  with  the  outside 
world.  The  railroad  would  lie  over  flat  level  land  except  for  a 
stretch  of  approximately  fifty  kilometers  over  the  mountains. 

All  along  the  southeast  of  this  road  lies  fertile  table  land 
suitable  for  the  raising  of  cattle.  In  fact,  the  llanos  extend  all 
along  the  route  while  to  the  north  stretches  the  coffee  producing 
section  of  Venezuela.  Near  Barinas  there  are  large  cacao  and 
tobacco  plantations  but  they  are  not  developed  to  any  appreci- 
able degree  nor  to  their  real  capacity,  due  to  the  lack  of  proper 
forwarding  agencies.  Furthermore,  the  opening  up  of  this 
region  by  railroad  would  give  great  impetus  to  further  settlement 
and  investment  in  the  interior,  for  it  is  an  observed  fact  that  after 
the  railroad  come  cities  and  civilization.  The  situation  is  simi- 
lar to  that  existing  in  our  own  history  when,  simultaneously 
with  the  building  of  the  trans-continental  railroads,  caravans 
pushed  their  way  westward  and  have  left  as  their  heritage  the 
great  cities  of  the  West.  This  lesson  from  our  own  history 
should  not  go  unnoticed,  for  the  same  opportunity  exists  in 
Venezuela  and  to  the  pioneers  will  come  rewards  similar  to  those 
reaped  by  our  own  dauntless  settlers. 

Even  now  before  the  building  of  this  railway,  English  compan- 
ies have  acquired  large  concessions  of  territory  near  the  proposed 
line.  This  is  only  a  start  and  soon  they  will  be  extending  their 
concessions  and  if  Americans  do  not  act  before  it  is  too  late  they 
will  find  the  choicest  land  already  taken.  Most  of  the  English 
concessions  lie  in  the  Apure  district,  the  best  cattle  land  in  Vene- 
zuela, whose  only  disadvantage  lies  in  the  fact  that  the  land  is 
frequently  inundated  by  the  overflowing  of  the  waters  of  the 
Apure  River.  The  value  of  the  land,  of  course,  depends  on  its 
fertility  and  the  availability  of  water,  but  it  may  be  stated  that 
a  square  league,  that  is,  twenty-five  square  kilometers  (9 
square  miles),  varies  in  price  from  two  thousand  to  five  thousand 
bolivars,  or  from  $400.00  to  $1000.00.  And  this  for  land  in  the 
best  cattle  section  of  Venezuela!  Among  other  sections  of  the 
country  well  suited  for  cattle  raising  are  the  llanos  of  Marturin, 
extremely  fertile  lands,  swept  by  the  trade  winds.  As  they  are 
situated  in  the  northwestern  part,  shipment  could  be  made 
through  the  port  of  Guanta  which,  it  is  predicted,  will  be  tl 


Venezuela  Report  135 

future  main  port  of  Venezuela.  In  this  same  vicinity  lie  the 
llanos  of  Barcelona,  even  closer  to  the  port  high  tablelands,  but 
somewhat  dryer  than  the  llanos  of  Maturin.  To  develop  this 
land,  a  railroad  from  Ciudad  Bolivar,  a  port  used  now  on  the 
Orinoco  and  Barcelona,  is  necessary.  This  would  connect  with 
the  present  line  from  Barcelona  to  Guanta,  thus  connecting  two 
important  ports  and  serving  a  rich  cattle  section,  necessitating 
the  building  of  only  three  hundred  kilometers  of  road. 

Further  west,  running  parallel  to  the  last  mentioned  line,  lies 
a  region  between  San  Fernando  and  Cagua,  and  as  Cagua  is 
already  on  a  railroad  line,  shipments  can  be  made  either  to 
Puerto  Cabello  or  La  Guaira.  The  llanos  of  Guarico  which  lie 
in  this  region  are  high  table  lands  but  with  numerous  oases 
which  provide  sufficient  water  for  the  cattle.  At  times,  parts  of 
this  region  are  subjected  to  inundation  which  makes  the  land 
very  rich  and  fertile.  This  is  another  section  merely  waiting 
the  day  when  capital  will  develop  railroads.  It  may  not  be 
amiss  to  remind  American  investors  that  the  English  have 
already  secured  three  large  concessions  along  this  route. 

Another  important  consideration  deserving  of  mention  is 
that  along  this  route  lie  coal  mines  which  have  not  been  devel- 
oped due  to  lack  of  transportation  facilities.  These  mines  would 
serve  as  an  easy  means  of  procuring  fuel  for  the  road. 

3.  Limon-Castilletas. 

Another  railroad  projected  is  that  from  Limon  to  Castilletas. 
About  Limon  are  rich  oil  fields  now  being  developed  but  which 
are  handicapped  by  the  fact  that  Maracaibo,  the  present  ship- 
ping port  for  oil,  lies  inside  the  Gulf  of  Maracaibo  and  only 
small  ships  can  enter  due  to  deposits  which  are  continually  filling 
up  the  strait.  Maracaibo  is  not  always  available  for  small  ships 
and  a  line  from  Limon  to  Castilletas,  which  is  a  port  lying  out- 
side the  bar  and  on  the  shores  of  the  Gulf  of  Venezuela,  would 
solve  the  present  difficulty  and,  besides,  effect  a  saving  of  over 
two  hundred  kilometers  in  sailing  distance. 

4.  Yuruari-Orinoco. 

The  last  important  railroad  which  the  country  needs  is  one 
from  the  Yuruari  River  to  the  Orinoco.  About  the  region  of 
Yuruari  are  rich  gold  mines  which  are  only  worked  to  a  small 


136  School  of  Foreign  Service 

extent  and  in  a  very  primitive  way  due  to  the  impossibility  of 
bringing  the  necessary  machinery  to  the  mines.  Not  only 
would  a  line  connecting  the  two  rivers  do  this  but  it  would  also 
pass  through  rich  grazing  lands.  Then,  too,  only  a  short  dis- 
tance to  the  east  are  the  iron  mines  of  Imataca,  still  unworked 
due  to  the  lack  of  transportation  facilities. 

Railroads  are,  then,  the  key  to  a  double  prosperity — prosperity 
for  the  foreign  investor  and  an  opportunity  for  Venezuela  to  take 
her  proper  place  in  the  markets  of  the  world.  It  seems  incon- 
ceivable that  here,  close  at  hand,  potential  factors  of  great  wealth 
are  lying  dormant  awaiting  the  magic  touch  which  in  this  case 
must  come  from  the  railroad,  the  forerunner  of  civilization. 
Dipping  further  into  the  future,  we  can  see  other  results  which 
would  quickly  follow  the  opening  up  of  this  great  country, — an 
increase  in  immigration,  consequently  a  larger  market  in  which 
to  buy  and  sell.  And  whom  should  it  benefit  more,  the  United 
State  close  at  hand,  or  Europe  a  week  further  away!  Time 
alone  will  decide,  but  this  point  can  bear  emphasis  again  and 
again  that  now  is  the  propitious  hour  when,  due  to  the  recent 
war,  American  goods  are  being  sought  for  in  increasing  volume 
by  Venezuela.  But  England  is  already  in  the  field  and  Germany 
is  striving  hard  to  regain  her  lost  place  in  the  sun.  It  behooves 
all  of  us,  therefore,  to  strive  with  might  and  main  to  consolidate 
the  position  in  world  commerce  which  was  thrust  upon  us  and 
there  lies  no  better  path  to  that  end  in  South  America  than 
along  iron  rails  constructed  by  American  capital  in  the  sister 

Republic  of  Venezuela. 

Joseph  P.  Quinlan. 


Venezuela  Report  137 


FOREIGN  TRADE  OF  VENEZUELA 

AND 
AMERICAN  GOODS  IN  VENEZUELA 

PART  I 
FOREIGN  TRADE  OF  VENEZUELA 

Where  there  is  population,  industry  and  resources,  there  will 
be  international  trade.  Venezuela  is  lacking  in  population  and 
her  industries  are  scarcely  in  the  first  stages  of  development,  but 
she  possesses  natural  resources  which  command  a  world  market. 
The  three  essentials  of  commerce  are:  (a)  transportation,  (b) 
freedom  of  labor  and  exchange,  (c)  security;  and  at  the  root  of 
all  trade  must  be  moral  integrity.1 

Until  the  beginning  of  the  present  administration,  Venezuelan 
commerce  has  been  fitful  and  unsatisfactory.  Under  the 
Gomez  regime,  however,  the  country  has  taken  great  strides 
forward,  especially  in  internal  development  and  in  the  estab- 
lishment of  a  national  credit  of  which  it  is  justly  proud.  As  a 
result,  her  foreign  commerce,  except  for  a  slight  falling  off  at  the 
beginning  of  the  war  period  and  a  rather  sharp  decline  in  1918, 
has  shown  a  steady  growth. 

Transportation  gives  commodities  and  persons  "place  utility" 
and  until  the  establishment,  recently,  of  a  splendid  system  of 
motor  roads,  as  yet  but  little  used,  Venezuela  has  been 
lacking  in  this  respect.  Natural  resources,  in  the  absence  of 
local  manufacturers,  become  worthless  without  means  of  trans- 
portation to  the  coast  for  export.  In  1908  there  existed  but 
thirteen  railroads  in  Venezuela  with  a  total  mileage  of  540 
kilometers2  connecting  a  few  of  the  richest  and  most  accessible 
regions  with  the  coast,  and  the  year  1920  finds  no  increase 
either  in  number  of  roads,  or  in  total  mileage.  Fertile  inland 
regions  are  still  without  outlet  for  their  products  and  vast 
mineral  wealth  and  forest  resources  lie  untouched,  awaiting 
transport  facilities. 

The  Venezuelan  coast  line  extends  for  1876  miles  and  possesses 


.  Brit.,  "Commerce." 
'Central  Executive  Council,  International  High  Commission,  "Venezuelan 
Financial  and  Economic  Conditions,"  and  Ency.  Brit.,  "Venezuela." 


School  of  Foreign  Service 

in  all  32  ports  of  various  sizes,  more  than  sufficient  to  handle  the 
potential  commerce  of  the  country.  The  amount  of  commerce 
passing  through  these  ports,  though  steadily  mounting,  has  in 
no  one  instance  approached  the  limit.  These  ports  have  devel- 
oped in  spite  of  onerous  tariff  regulations  and  other  handicaps, 
because  the  demand  for  the  riches  possessed  by  the  Republic  in 
the  shape  of  natural  resources  is  too  insistent  to  be  checked  by 
natural  or  artificial  barriers. 

The  principal  industries  are  agricultural  and  pastoral,  the 
most  important  agricultural  products  being  coffee,  cacao,  sugar, 
tobacco,  corn  and  beans.1  Manufactures  are  few  in  number 
and  those  existent  for  the  most  part  flourish  mainly  by  the  help 
of  severe  tariff  discriminations.  These  manufactures  include 
the  following  lines:  beer,  hats,  candles,  ice,  chocolates,  matches, 
cigarettes,  boots  and  shoes,  cotton  goods,  drugs  and  medi- 
cines. 

There  are  several  electric  plants  in  Venezuela  and  a  few  fac- 
tories for  the  manufacture  of  agricultural  implements.  On  the 
whole,  however,  Venezuelan  manufacturing  is  still  in  its  infancy 
and  the  country  must  depend  on  importation  for  nearly  all  her 
manufactured  wares;  this  flow  of  importation  is  conditioned  by 
the  nature  of  the  population  whose  purchasing  power,  except  for 
the  gentry  of  Caracas  and  a  few  of  the  more  advanced  cities,  is 
limited,  in  great  part,  to  the  barest  necessities  of  life. 

On  the  whole,  the  World  War  had  a  beneficial  effect  on  Vene- 
zuela's foreign  commerce.  At  the  outbreak  of  the  war,  Europe 
withdrew  her  shipping  and  Venezuela's  foreign  commerce  was 
hard  hit.  The  year  1914  witnessed  a  sharp  decline,  but  gradu- 
ally in  the  ensuing  years  the  figures  mounted  until  in  1917  they 
were  nearing  the  pre-war  totals,  only  to  fall  off  sharply  in  1918. 
Advanced  statistics  for  1919,  with  no  return  from  the  Aduana  of 
Maracaibo,  indicate  a  phenomenal  increase  both  in  imports  and 
exports  for  1919  over  the  previous  year.  The  value  of  Vene- 
zuela's total  foreign  commerce  by  years,  in  millions  of  bolivares, 
follows  :2 


International  High  Commission,  "Zones  of  Venezuela. " 
2"Alta    comisi6n    internacional,"     Seccion     Venezolana,     Caracas,    1919; 
"Memoria  de  Hacienda,"  1919. 


Venezuela  Report  139 

1913 Bs.  246 

1914 184 

1915 191 

1916 228 

1917 239 

1918 179 

1919 315 

In  1917  the  imports  into  Venezuela  from  the  United  States 
amounted  to  70%  of  her  total  imports.  For  the  same  year, 
Great  Britain's  share  of  import  trade  was  16%  and  all  others 
14%.  The  same  for  1918  follow:* 

United  States 60% 

Great  Britain 30% 

Others 10% 

In  1917  the  exports    from  Venezuela  were  apportioned  as 

follows : 

United  States 55% 

Great  Britain 11% 

Others 34% 

The  same  for  1918  follow: 

United  States 45% 

Great  Britain 17% 

Others 38% 

Incoming  shipments  by  parcel  post  for  1917  amounted  to- 
Bs.  3,837,916  ($740,719.00),  the  principal  articles  coming  by 
this  method  being  drugs,  medicines,  jewelry,  watches,  hats,, 
cotton  goods,  silks  and  rubber  manufactured  goods. 

IMPORTATION  BY  PARCELS  POST 

Source                       Year  Year 

1917  1918                      1919 

U.  S $350,339  $292,423            (not  available) 

France 228,559  56,648 

Italy 76,127  59,923 

United  Kingdom 61,626  94,258 

Spain 19,570  3,595 

Others....                               4,498  20,100 


Total  1917 $740,719  $524,947 

Total  1918 524,947 

Decrease $215,772 

Although  the  foreign  trade  of  Venezuela  actually  decreased 
during  the  war,  the  country  was  indirectly  benefited  by  the 
JBureau  of  Foreign  and  Domestic  Commerce,  "Venezuela." 


140  School  of  Foreign  Service 

turning  of  the  energy  of  the  nation  to  the  development  oi 
natural  resources,  which,  in  turn,  must  mean  in  due  course  an 
increased  surplus  of  production  for  export.  Furthermore,  the 
shortage  of  shipping  during  the  war  necessitated  the  use  of 
existing  bottoms  to  the  fullest  extent  with  a  consequent  effort 
towards  the  improvement  of  terminal  facilities  and  an  increase 
in  the  speed  of  loading  and  unloading  cargo  carriers.  As  a 
result  of  this  feverish  war  activity,  a  number  of  Venezuelan 
ports  now  possess  modern  equipment  for  speedy  handling  of 
cargo  and  with  the  products  of  the  country  moving  seawards  in 
increasing  quantities,  Venezuela's  harbors  should  be  attractive 
ports  of  call  for  tramp  steamers  and  conducive  to  the  establish- 
ment of  other  routes  of  liner  traffic. 

The  principal  articles  imported  into  Venezuela  are  cotton 
textiles,  wheat  flour,  machinery,  agricultural  implements, 
kerosene,  drugs  and  medicines.  The  principal  exports  are  coffee, 
cacao,  balata,  hides  and  skins,  rubber,  gold,  copper,  sugar, 
asphalt,  heron  plumes  and  cattle. 

~  Estimating  the  bolivar  at  .193  cents  gold,  the  accompanying 
iigures  show  the  extent,  in  United  States  currency,  of  Vene- 
zuela's foreign  trade: 

1917— Imports $22,188,223.08 

Exports 23,164,701.60 

Total.... $45,352,924.68 

1918— Imports $14,908,275.39 

Exports 19,813,216.67 

Total $34,721,492.07 

A  decrease  in  imports  for  1918  over  1917  of. $7,279,947.69 

A  decrease  in  exports  for  1918  over  1917  of. 3,351,484.93 

A  total  decrease  in  foreign  trade  for  1918  over  1917  of $10,631,432.62 

191-9— Imports ...$27,020,000.00 

Exports 33,196,000.00 


Total $60,216,000.00 

An  increase  in  imports  for  1919  over  1918  of. $12,111,724.61 

An  increase  in  exports  for  1919  over  1918  of. 13,382,783.33 

A  total  increase  in  foreign  trade  for  1919  over  1918  of. $25,494,507.94 

(Above  figures  were  compiled  from  official  sources;  advance  estimates  for  1919 
from  "Memoria  de  Hacienda,  Ano  civil  de  1919.") 


Venezuela  Report  141 

PART  II 
AMERICAN  GOODS  IN  VENEZUELA 

American  goods  have  always  been  welcome  in  Venezuela,  even 
when  Americans  were  personae  non  gratae  in  the  country.  The 
greatest  obstacle  in  the  way  of  increased  sales  of  American 
goods  in  Venezuela  is  American  selling  methods. 

In  selling  the  Venezuelan  market,  German  and  British  mer- 
chants have  always  evidenced  a  readiness  to  adapt  their  goods 
to  meet  the  requirements  of  Venezuelans,  while  it  has  been  the 
policy  of  Americans  in  general,  to  attempt  to  force  their  custom- 
ers to  alter  their  requirements  to  fit  American  goods.  The 
World  War,  by  shutting  off  Europe  from  South  America,  helped 
certain  American  dealers  to  force  on  Venezuela  goods  which  the 
merchants  of  that  country  did  not  want.  A  homely  example  of 
American  " strong  arm"  selling  methods  occurred  during  the 
war  in  the  matter  of  an  order  for  a  quantity  of  stickers,  or  labels,, 
to  be  pasted  on  small  packages.  The  Venezuelan  house  ordered 
the  labels  without  the  usual  gummed  back,  as  the  climate  of  the 
country  propagates  myriads  of  mucilage-hungry  insects  and  was 
clearly  not  favorable  to  the  usual  form  of  gummed-back  stickers. 
Therefore,  the  order  was  given  for  a  certain  number  of  printed 
labels  with  plain  backs,  the  intention  being  to  apply  mucilage 
to  the  labels  as  needed.  The  American  exporter,  however, 
promptly  sent  the  usual  gummed-back  labels  with  the  intimation 
that  he  was  selling  labels  with  gummed-backs  and  not  labels 
with  another  kind  of  back  and  that  he  did  not  think  it  advisable 
to  change  his  wares  in  order  to  fill  a  small  order.  The  Vene- 
zuelan house  needed  the  labels  and  as  Europe  was  isolated,  it  was 
forced  to  accept,  under  protest,  an  article  which  was  clearly 
doomed  to  prove  unsatisfactory.  This  is  but  one  example  of 
what  I  have  been  told  is  one  of  the  greatest  defects  in  American 
selling  policy.  Now  that  the  war  is  over  and  Europe  is  hasten- 
ing to  pick  up  the  slack  ends  of  her  world  trade,  America  is 
liable  to  lose  a  large  part  of  her  war-won  trade  if  she  does  not 
immediately  alter  her  previous  attitude.  "With  the  exception 
of  flour,  lard,  lumber,  cement,  certain  lines  of  dry  goods,  type- 
writers, cash  registers,  sewing  machines  and  a  few  other  articles 
in  which  Europe  does  not  compete,  the  main  current  of  impor- 
tation into  Venezuela  has  been  from  European  countries,  which 


142 


School  of  Foreign  Service 


have  for  many  years  made  a  careful  study  of  the  merchandise 
and  packing  requirements  of  the  Republic.  Backed  by  ample 
banking  facilities,  European  firms  have  given  liberal  and  long 
credits  to  facilitate  the  sale  of  their  products."1 

The  necessity  of  careful  packing  has  been  systematically 
dinned  into  the  ears  of  American  exporters  and  as  consistently 
ignored.  As  import  duties  into  Venezuela  are  in  many  cases 
charged  on  commodity  and  container  alike  and  as  the  chief 
means  of  transportation  in  the  interior  is  by  burros,  over  moun- 
tain trails,  the  packing  should  be  as  light  and  at  the  same  time 
as  durable  as  possible.  In  this  connection,  there  is  a  story  cur- 
rent in  Caracas  with  reference  to  a  shipment  of  small  balloons 
for  testing  purposes,  which  may  or  may  not  be  true,  but 
which  vividly  illustrates  the  point.  The  American  house,  upon 
receiving  an  order  for  a  number  of  balloons  to  be  delivered  to 
Venezuela,  is  charged  with  having  inflated  each  and  every 
balloon,  enclosed  each  balloon  in  a  separate  case  and  shipped 
the  entire  order  in  this  form! 

In  the  near  future,  Germany  will  again  be  a  dangerous  com- 
petitor in  Venezuela.  At  the  present  time  there  is  a  German 
trade  commission  touring  the  country  and  plans  are  also  in 
process  of  formation  for  German  immigration  on  a  huge  scale. 
Though  the  present  government  of  Venezuela  is  more  than  well 
disposed  towards  the  United  States,  it  is  clearly  evident  that  the 
mass  of  Venezuelans  while  not  hostile,  are  rather  more  suspicious 
than  friendly,  while  the  feeling  of  sympathy  for  Germany  is  and 
always  has  been  manifestly  very  strong.  There  is  strong  Ger- 
man propaganda  now  at  work  in  Venezuela  for  the  future  sale 
of  German  goods.  The  idea  is  deeply  set  in  the  Venezuelan 
mind,  as  deeply  rooted  as  his  feeling  of  distrust  of  the  "Norte 
Americano, "  that  what  is  made  in  Germany  is  the  best.  There 
have  even  been  instances  where  American  goods  have  been  sold 
as  "Made  in  Germany,"  because  of  this  skillful  insinuation  of 
the  superiority  of  German  goods.  For  a  long  time  "Reuter's 
soap,"  manufactured  by  a  New  York  concern,  sold  widely  in  the 
Republic,  and  every  Venezuelan  merchant  would  have  sworn 
that  the  Reuter  Company  was  a  German  concern,  in  spite  of  the 
fact  that  "  REUTER  COMPANY — NEW  YORK,  "  was  plainly  marked 

1<J  Market  for  Construction  Materials  in  Venezuela,"  Bureau  of  Foreign  and 
Domestic  Commerce. 


Venezuela  Report  143 

on  every  package.  The  United  States  should  institute  a  coun- 
ter trade-propaganda  in  favor  of  goods  "Made  in  America,"  if 
she  would  retain  and  increase  the  volume  of  her  trade  with 
Venezuela. 

Experience  has  shown  that  the  best  means  of  furthering  the 
sale  of  American  goods  is  through  the  establishment  of  agencies 
in  the  principal  cities  of  the  country.  Formerly  much  good 
American  energy  was  wasted  through  the  practice  of  sending 
out  commercial  travellers  who  toured  the  country  without  first 
studying  the  field  and  reporting  regularly  to  the  head  office  in 
the  States.  A  resident  American  agent,  with  several  assistants 
to  alternate  on  selling  trips  into  the  interior,  forms  friendships, 
observes,  and  establishes  liaison  with  the  government,  which  is  of 
prime  importance  in  commercial  dealings  with  certain  Latin- 
American  republics.  Especially  in  meeting  the  peculiar  cus- 
toms regulations  by  which  so  many  incoming  shipments  are 
questioned,  held  up,  fined  or  confiscated,  is  the  resident  foreigner 
more  apt  to  secure  expeditious  treatment  while  the  native 
handling  an  agency  would  be  without  the  recourse  always  at 
hand  for  the  American  representative. 

A  serious  obstacle  to  Venezuela's  trade  and  to  the  future 
extension  of  the  sale  of  American  goods  in  the  Republic  is  the 
complicated  system  of  customs  collection.  The  complaints 
heard  are  those  of  friends  anxious  to  facilitate  trade  and  elimin- 
ate sources  of  friction.  "There  are  nine  classes  in  the  customs 
tariff,  ranging  from  0.05  Bs.  per  kilo  gross  for  the  first  class  to 
Bs.  20  per  kilo  gross  for  the  ninth  class.  In  addition  to  the 
regular  schedule,  some  articles  are  subject  to  specific  or  ad 
valorem  surtaxes,  two  surtaxes  of  12>^%  each,  the  National 
Tax  and  the  Territorial  Tax  were  authorized  in  April,  1901,  and 
a  30%  duty  established  by  a  decree  of  February,  1903,  for  the 
purpose  of  paying  off  the  foreign  indebtedness  and  continued 
by  decree  of  June,  1912,  to  be  used  for  internal  improvements. 
There  is  also  the  sanitary  tax  of  1%  and  a  surtax  of  30%  on 
imports  from  the  West  Indies  (since  June,  1881)  designed  to  pro- 
mote the  establishment  of  wholesale  houses  and  warehouses.' >x 

"American  exporters  have  been  discouraged  by  the  intricate 
system  of  fines  and  penalties  imposed  by  the  customs  regulations 

Compilations  from  "Ley  de  Aduanas,"  and  "Ley  de  arancel  de  Derechos 
de  importacion  de  16  de  junio  de  1915." 


144  School  of  Foreign  Service 

for  slight  errors  in  invoices."1  The  customs  collectors  and 
officials  receive  meager  salaries,  but  the  discoverer  of  an  error  in 
an  invoice,  or  other  violation  of  customs  regulations,  receives 
one  half  of  the  resultant  fine.  Consequently,  there  is  a  natural 
zeal  in  discovering  errors,  frequently  resulting  in  fines  for  the 
omission  of  commas,  faulty  use  of  semi-colons  and  for  abbrevi- 
ating. "As  compared  with  other  South  American  countries, 
Venezuela  is  placed  at  a  distinct  disadvantage  and  many  Ameri- 
can merchants  have  refused  to  continue  doing  business  in  the 
Republic.  "2 

Other  obstacles  to  the  furtherance  of  the  sale  of  American 
goods  in  Venezuela  are  poor  steamship  connections  with  the 
States  and  the  resultant  slowness  of  mails  and  the  unwillingness 
of  the  larger  American  export  houses  to  ship  small  trial  orders 
which  the  merchants  in  Venezuela  frequently  insist  upon. 
1 1n  closing,  the  writer  may  use  the  privilege  of  a  patriotic  Ameri- 
can to  say  a  word  concerning  the  impressions  he  received  as  to  the 
character  and  ability  of  the  salesmen  of  American  goods 
encountered  in  Venezuela.  While  there  are  many  young  men 
in  the  field  who  are  models  of  strong  character  and  efficiency 
(for  the  most  part  Porto  Ricans),  it  must  be  confessed  that  the 
larger  cities  and  the  capital,  Caracas,  are  not  over-supplied  with 
energetic  young  American  salesmen  of  steady  habits  able  to 
command  the  respect  of  the  Venezuelan  buyers.8 

George  A.  Town  send. 

Bureau  of  Foreign  and  Domestic  Commerce,  "Venezuela." 

2Bureau  of  Foreign  and  Domestic  Commerce,  "  Venezuela. " 

'Together  with  this  report  the  writer  has  submitted  detailed  statistics 
containing  the  following  information;  the  tables  are  on  file  in  the  School  of 
Foreign  Service: 

1. — Ten  year  table  of  foreign  trade  of  Venezuela. 

2. — Value  of  imports  by  ports  in  bolivares. 

3. — Principal  articles  of  export  for  the  years  1917  and  1918  valued  in  boli- 
vares. 

4.— Exports  by  ports,  1917  and  1918  (bolivares). 

5. — Destination  of  exports,  1918  (bolivares). 

6. — Entrance  of  ships  by  ports — 1918. 

7. — Entrance  of  ships  by  flags — 1918. 

8.— Sailings  by  ports— 1918. 

9.— Sailings  by  flags— 1918. 

10. — Imports  for  the  six  years  1913  to  1918  (in  bolivares). 
11. — Exports  in  the  six  years  1913  to  1918 — bolivares. 


APPENDIX 

I 

LECTURE  DELIVERED  BY  DR.  PEDRO  ITRIAGO  CHACIN  ON  JULY 
30,  1920,  IN  THE  SCHOOL  OF  POLITICAL  SCIENCE  OF  THE 
UNIVERSITY  OF  CARACAS,  MARKING  THE  END  OF  THE  COURSE 

OF  STUDY  CARRIED  ON  BY  THE  STUDENTS  OF  THE  SCHOOL  OF 

FOREIGN  SERVICE  OF  GEORGETOWN  UNIVERSITY  IN  CARACAS, 
VENEZUELA. 

Professor  Sherwell: 

Students  of  the  University  of  Georgetown: 

We  are  pleased  that  you  have  had  the  opportunity  to  experi- 
ence the  affection  of  the  Venezuelan  Government  and  people 
for  your  illustrious  country,  a  country  admirable  in  every 
respect  and  especially  because  of  the  fact  that  when  our  nation- 
alities began  their  lives,  she  was  the  stronghold  of  American 
rights. 

Through  a  magnificent  destiny,  which  you  are  loftily  fulfilling, 
you  proclaim  yourselves  the  champions  of  a  democracy  whose 
models  will  be,  on  the  American  continent,  amid  glory  common 
to  us  all,  Washington  and  Bolivar;  the  one  representing  the 
equanimity  of  the  great  Saxon  race,  and  the  other  embodying 
the  dreams  of  progress,  at  times  impatient,  but  always  mag- 
nanimous, of  that  Latin  soul  which  vibrates  in  our  veins  and 
inspires  our  conduct. 

These  two  souls  come  into  symbolical  contact  to-day, — and 
God  grant  that  it  be  forever  so! — in  this  intellectual  communion 
of  youthful  students  at  the  foot  of  our  Avila,  students  who  may 
one  day  be  the  citizens  of  that  future  country  announced  by 
Rodo,  which  may  then  call  itself  by  a  single,  glorious  name — 
simply  and  grandly, — America,  a  country  created  not  through 
political  combinations  or  sordid  calculations,  nor  through  im- 
perialistic and  warlike  expansions,  but  through  community  of 
interests  and  community  of  ideas;  a  country  created  through 
confraternity,  supported  by  justice,  and  made  everlasting 
through  right. 
145 


146  School  of  Foreign  Service 

Gentlemen: 

The  noblest  edifice  that  has  reared  its  ideal  shield  over  the 
world  is  Law. 

No  institution  created  by  mortal  beings  (by  its  grandeur, 
law  has  been  thought  divine,  and  indeed,  jus  and  fas  were 
identical  in  their  origin)  answers  more  fully  the  higher  aspira- 
tions of  the  human  soul. 

Man,  who  has  lived  in  a  hole  in  a  rock,  or  on  his  native  plains, 
under  the  roof  of  heaven,  can  build  for  his  residence  dwellings 
more  or  less  sumptuous;  for  him  a  ray  of  a  torrid  sun  is  an  abun- 
dance; when  he  loves  or  dreams  he  is  satisfied  with  a  moonbeam 
and  is  able  to  boast  that  he  has  destroyed  darkness;  man,  who 
carries  within  himself  the  essential  substance  of  all  beings,  the 
substance  which,  by  its  manifestations,  is  the  synthesis  of  the 
world,  and  through  which  great  silent  men  can  live  happily  by 
themselves,  may  traverse  distances  with  the  wings  of  the  condor 
and,  at  will,  join  his  fellow-beings  for  pleasure  or  for  labor;  he 
inhabits  palaces  with  Agrippa,  partakes  of  banquets  with  Lucul- 
lus,  and  is  carried  with  Cleopatra,  in  the  bark  of  pleasure,  the 
nuptial,  dream-hued  ship.  *  *  *  But  is  that  all,  the  final 
purpose  of  his  destiny?  Is  such  perchance,  the  essential? 
Does  that  answer  the  cravings  of  his  own  soul  and  the  conscience 
of  humanity? 

No;  that  is  not  the  test  of  value,  not  even  of  progress.  For 
in  the  face  of  such  philosophy  a  thousand  queries  will  ever  rise 
to  his  lips.  Is  he  free  or  not?  Does  he  enjoy  equality  and,  on 
his  part,  does  he  not  tyrannize  ?  Does  he  hold  among  his  fellow- 
beings  a  place,  great  or  humble,  but  a  place,  none  the  less,  from 
which  he  can  work  out  his  own  destiny  and  that  of  a  group 
such  as  his  family,  his  city,  or  his  country?  May  he  think, 
live,  produce,  build  up  a  fortune  and  a  home  for  himself,  thus 
ennobling  with  a  serene  dignity  his  existence  and  finally  per- 
petuating himself,  through  his  ideas,  his  children,  and  his 
achievements?  In  order  that  we  may  always  freely  answer 
"yes,"  man  has  forged  Law.  And  I  repeat  it,  he  has  truly 
forged  law  because  that  process,  though  begun  with  man  him- 
self and  continuing  through  all  the  ages  to  be  his  glory  in  history 
and  for  eternity,  this  science  which  he  has  produced  is  like  those 
lofty  structures  which  have  exhausted  the  effort  of  one  genera- 


Venezuela  Report  147 

tion  after  another,  their  formidable  architecture  forever  pro- 
viding unfinished  work  for  generations  to  come. 

In  that  great  total,  one  of  the  most  modern  and  perhaps  one 
of  the  noblest  parts  is  International  Law,  whose  subjects  are 
not  merely  individuals,  but  the  groups  we  call  states. 

When,  in  the  midst  of  the  dismay  produced  in  our  souls  by 
the  European  war,  I  began,  in  1917,  my  lectures  on  the  History 
of  International  Law,  I  made  an  optimistic  profession  of  faith, 
a  profession  of  absolute  faith  in  the  efficacy  of  those  principles 
of  justice  which  must  regulate  the  relations  of  peoples. 

Permit  me  to  repeat  what  I  said  on  that  occasion: 

International  Law  is  truly  a  triumph  of  reason.  Applying 
to  this  subject  a  well-known  saying  spoken,  however,  with 
reference  to  broader  fields,  it  is  "  human  reason  itself  in  so  far 
as  applied  to  the  government  of  nations. "  For  although  some  of 
its  rules  are  obeyed  crudely  and  instinctively  as  manifestations 
of  social  requirements  in  primitive  groups,  force,  which  is  the 
negation  of  Right,  has  prevailed  over  those  rules  to  such  an 
extent  that  only  through  the  supreme  influence  of  religious 
ideas,  which  are  all  powerful  in  the  infancy  of  social  organiza- 
tions, have  they  been  applied  to  some  extent  in  safeguarding 
rights  such  as  the  respect  due  to  ambassadors,  the  inviolability 
of  sacred  truces  and  the  burial  of  soldiers  fallen  on  battlefields. 

It  was  through  an  effort  of  reason,  ever  progressing  and 
steadily  receiving  more  enlightenment,  that,  with  the  passing 
of  centuries,  those  standards  which  now  impose  unavoidable 
obligations  on  modern  states  have  been  established.  The 
evolution  has  been  harmonious  in  its  changes,  and  reflects  the 
different  stages  of  civilization  through  which  mankind  has 
advanced. 

Reason  has  striven  to  replace  the  reign  of  violence,  the 
negation  of  thought,  by  effecting  the  progressive  development  of 
human  society  through  the  force  of  justice;  and,  hence  it  is  that 
every  day  more  perfect  relations  have  been  established  among 
civilized  countries  through  respect  for  the  equality  of  all  and 
through  the  acknowledgment  of  mutual  individuality,  which  is 
in  effect  a  consequence  of  the  respect  we  demand  for  ourselves. 
In  short,  this  advance  rests  on  the  realization  of  the  dignity  of 
man,  a  realization  which,  in  this  case,  leads  men  logically  to 
admit  the  sovereignty  of  the  people  and  the  sovereign  inde- 


148  School  of  Foreign  Service 

pendence  of  the  state,  which  implies  that  each  is  free  to  organize 
as  it  seems  fit  in  order  to  fulfil  its  destiny  without  foreign 
interference. 

It  is  only  too  true  that  the  present  catastrophe  which  shook 
the  world  has  given  rise  to  the  thought,  the  sad  thought,  that 
the  work  of  centuries  has  failed;  and  truly  the  spectacle  appals 
us  with  its  magnitude.  The  leaders  of  humankind,  who  led  the 
forward  movement  towards  spiritual  freedom,  who  had  fostered 
congresses  and  conferences  designed  to  draw  men  closer  to  one 
another  and  thus  to  settle  their  differences,  who  had  established 
at  The  Hague  a  supreme  Tribunal  of  Nations,  have  seen  them- 
selves compelled  to  adopt  the  very  expedient  which  seemed 
forever  repudiated  because  of  universal  condemnation. 

England,  prudent  England,  the  model  on  which  all  free 
nations  chose  to  shape  their  institutions  and  their  lives;  vigorous 
Germany,  as  learned  as  she  is  strong,  whose  power  is  established 
through  the  maintenance  of  that  discipline  and  virile  rule  of 
life  admired  by  Tacitus  who  proposed  it  to  the  decadent  Romans 
as  reproach  since  it  could  not  serve  as  a  model;  Italy,  our  teacher 
in  arts  as  well  as  in  the  science  we  profess,  favored  as  she  was 
with  the  subtle,  deep  and  harmonious  genius  which  made  for- 
ever famous  the  schools  of  Proculus  and  Sabinus;  France, 
admired  and  admirable  France,  alma  mater  of  so  many  happy 
innovations  and  of  so  many  generations  of  high  thinkers, 
especially  of  that  generation  of  a  century  ago,  deemed  heroic 
as  Carlyle  understood  heroism,  and  which  aroused  by  Bolivar 
translated  idealism  into  action  and  immortalized  the  most  trans- 
cendental moment  in  the  history  of  these  Americas; — Russia, — 
I  shall  refrain  from  mentioning  Russia  because  a  dark  cloud  has 
obscured  for  the  great  majority  the  spiritual  strength  of  that 
people,  weighed  down  with  future  problems  but  permeated  with 
a  sentimental  and  deep  mysticism  which  some  discovered  when 
they  grew  to  admire  Tolstoy  and  Dostoievsky  whom  Enrico 
Ferri  has  compared  to  Dante, — all  these  nations  and  those  they 
strongly  influence,  all  these  peoples  who  occupy  so  prominent  a 
place  in  history,  we  see  fanaticized  by  the  fire  of  war,  sowing 
death  mercilessly,  spreading  ruin  from  one  hemisphere  to  another 
and  planting  pessimism,  if  not  despair,  in  one  conscience  after 
another.  This,  too,  just  when  it  seemed  impossible  that  any 
of  them,  at  the  present  stage  of  development,  should  need 


Venezuela  Report  149 

engage  in  contest  other  than  those  through  which  life  could  be 
more  secure  and  comfortable,  physical  welfare  greater,  and 
nations  brought  nearer  the  tranquil  reign  of  the  spirit. 

But  we  must  never  lose  sight  of  the  fact  that  all  this  is  but  a 
crisis,  one  of  those  great  convulsive  crises  of  the  moral  organism, 
from  which  the  concept  of  right  and  the  necessity  of  employing 
the  only  formulas  truly  protective  of  equity  and  justice  shall 
emerge  more  vigorous  than  ever. 

After  this  great  war,  the  desire  for  a  lasting  peace  will  be  more 
intense,  and  the  means  to  make  that  peace  certain  will  be 
applied  with  greater  energy. 

These  hopes,  cherished  by  many  of  us  during  the  struggle,  we 
have  seen  synthesized  in  the  Wilsonian  concept  and  incorporated 
with  the  precision  of  a  code  in  the  Covenant  of  the  League  of 
Nations.  Since  the  appearance  of  Christianity,  only  the 
Thirty- Years  war  terminating  in  its  Congress  of  Westphalia, 
and  the  French  Revolution,  with  its  declaration  of  the  rights  of 
man  (which  Gregoire  intended  to  supplement  with  a  declara- 
tion of  the  rights  of  states),  will  leave  on  international  law  as 
deep  a  mark  as  the  World  War  with  its  Covenant  of  the  League 
of  Nations. 

A  flight  of  eagles,  but  happily  not  of  imperial  eagles,  crosses  all 
borders;  a  magnanimous  feeling  of  solidarity  struggles  to  conquer 
sterile  distrust,  and  the  members  of  the  human  family  begin  to 
recognize  each  other.  It  seems  as  if  we  were  approaching  the 
realization  of  the  generous  idea  of  Cicero  and  Seneca;  man  is 
nowhere  a  foreigner;  his  true  country  is  the  universe.  The 
dream  of  a  Magna  Ctvitas,  the  ideal  city  of  humankind,  is  taking 
shape. 

Wilson's  plan  tends  to  that  end.  We  have  seen  that  it  is  not 
new,  but  it  is  great.  Among  others,  Sully  and  Henry  IV,  the 
Abbe  Saint-Pierre  and  Rousseau,  cherished  this  idea,  which 
Voltaire,  the  skeptic,  considered  chimerical.  Kant,  the 
philosopher,  used  to  say:  "What  we  desire  is  a  General  Congress 
of  Nations,  the  convening  and  duration  of  which  would  depend 
entirely  upon  the  sovereign  will  of  the  several  members  of  the 
league." 

The  lineage  of  statesmen,  of  dreamers,  and  of  philosophers  is 
a  single  and  privileged  moral  descent.  Prudent  forethought, 
creative  imagination  and  profound  grasp  of  the  supreme  laws 


150  School  of  Foreign  Service 

which  regulate  nature  and  man  are  crystallized  in  the  souls  of 
liberators.  Bolivar  also  strove  to  establish  an  Assembly  of 
Nations  at  the  Isthmus  of  Panama.  And  it  is  worthy  of  notice 
that  these  nations  in  Bolivar's  plan,  as  well  as  in  the  Covenant 
of  the  League  of  Nations,  would  be  forced  to  obey  the  principles 
of  International  Law.  The  Congress,  in  his  first  project,  was 
intended  to  be  established  somewhat  rigidly,  and,  in  that,  too, 
Bolivar  anticipated  the  ennobling  of  an  idea,  fostered  by  modern 
writers  like  Blunstchli,  Dudley  Field,  Fiore,  Pessoa  (now  Presi- 
dent of  Brazil),  and  which  has  been  the  subject  of  numerous 
international  conferences. 

What  deep  sadness  must  our  great  liberator  have  felt  when 
in  figurative  language  he  compared  his  ineffective  plan  for  a 
congress  with  the  insane  Greek  of  old  who  thought  that  standing 
on  a  rock,  he  could  steer  the  ships  passing  on  the  sea! 

The  immediate  genesis  of  the  Covenant  of  the  League  of 
Nations  is  found  in  the  famous  Fourteen  Points  of  President 
Wilson. 

Some  of  them  follow: 

In  the  first,  President  Wilson  proposes  international 
agreements  of  peace  entered  into  frankly  and  openly,  and 
the  obligation  of  proscribing  secret  international  agreements 
of  any  kind  in  the  future. 

In  the  second,  he  proposes  the  freedom  of  the  seas  in 
time  of  peace  as  well  as  in  time  of  war,  exclusive  both  of 
territorial  waters  and  of  seas  which  may  be  closed  by  inter- 
national action  with  the  purpose  of  carrying  out  inter- 
national agreements. 

In  the  third,  he  proposes  the  suppression,  as  far  as 
possible,  of  economic  barriers,  and  the  establishment  of 
equal  commercial  conditions  for  the  states  which  would 
accept  the  peace  and  join  to  maintain  it. 

In  the  fourth,  he  proposes  the  reduction  of  armaments  to 
the  minimum  limit  compatible  with  the  internal  safety 
of  each  country. 

Lastly,  in  the  fourteenth,  he  proposes  the  creation  of  a 
General  Society  of  Nations  to  guarantee  the  territorial 
integrity  and  the  political  independence  of  the  small  as 
well  as  of  the  large  states. 

Certainly,  this  helmet  of  Mambrinus  suffered  numerous 
bruises,  as  happens  to  all  generous  dreams  when  they  come  into 
contact  with  selfishness  or  with  the  consuming  breath  of  the 


Venezuela  Report  151 

passions  of  the  moment;  let  us  have  faith,  however,  in  that 
saintly  philosopher  who  teaches,  on  the  contrary,  that  the  per- 
fect being  is  he  who  passes  from  understanding  to  reality,  and 
let  us  hope  that  it  will  evolve  toward  superior  forms. 

Let  us  hope  that  such  a  helmet  will  not  prove  to  be  the  shaving 
dish  of  a  barber. 

The  purposes  of  the  League  are  condensed  in  its  admirable 
preamble: 

"The  High  Contracting  Parties, 

In  order  to  promote  international  cooperation  and  to 
achieve  international  peace  and  security  by  the  acceptance 
of  obligations  not  to  resort  to  war,  by  the  prescription  of 
open,  just  and  honorable  relations  between  nations,  by 
the  firm  establishment  of  the  understandings  of  inter- 
national law  as  the  actual  rule  of  conduct  among  Govern- 
ments, and  by  the  maintenance  of  justice  and  a  scrupulous 
respect  for  all  treaty  obligations  in  the  dealings  of  organized 
peoples  with  one  another,"  and  so  on. 

In  order  to  realize  these  purposes,  it  is  necessary  to  establish 
means  which  will  enable  nations  to  settle  their  differences  with- 
out having  recourse  to  war.  It  is  necessary  to  reduce  present 
armaments  and  to  eliminate  for  the  future  this  burden  which 
weighs  upon  modern  peoples  as  the  hateful  war  tributes  of 
antiquity,  and  which  is  nothing  less  than  a  resurrected  form  of 
slavery.  In  order  to  obtain  this,  the  Council  of  the  League  is 
charged  with  the  work  of  formulating  a  program  for  the  reduc- 
tion of  armaments,  based  upon  the  inquiries  and  decisions  made 
by  the  respective  governments,  and  with  the  purpose  of  keeping 
under  control  the  manufacture  of  ammunition. 

Regarding  the  first  point,  a  set  of  measures  already  established 
by  international  law  is  ordered,  and  strongly  sanctioned  by 
provisions  of  the  Covenant. 

The  states  between  which  disputes  or  conflicts  may  arise  will 
have  recourse  to  the  Council  or  to  the  Assembly,  or  will  submit 
their  cases  to  arbitration.  They  are  forbidden  to  resort  to  war 
until  three  months  have  elapsed  after  the  decision  of  the 
Council  or  the  Assembly  or  of  the  third  state  to  which  they  may 
have  recurred;  all  this  with  the  purpose  that  the  counsels  of 
prudence,  the  strength  of  just  decisions,  and  that  the  calming 
and  tranquilizing  action  of  time  itself  may  have  their  effects  on 
the  irritated  feelings  of  men. 


152  School  of  Foreign  Service 

In  order  to  obtain  its  principal  object,  the  Covenant  also  pro- 
vides for  the  creation  of  a  permanent  Court  of  Arbitration,  an 
institution  which,  with  the  economic  sanctions  established  in 
the  same  Covenant,  will  be  the  most  effective  instrument  of  its 
civilizing  action,  for  we  know  well  that  peace  will  never  exist 
among  men  while  justice  is  denied. 

The  project  for  the  establishment  of  a  permanent  code  of 
international  character  met  at  The  Hague,  and  has  always  met, 
one  formidable  obstacle:  How  can  all  the  states  be  represented 
in  a  body  which  must  necessarily  be  small? 

It  is  noted  that  the  omission  of  some  of  them  is  considered  as 
a  flagrant  violence  of  juridical  equality  and  derogatory  to  the 
sovereignty  of  those  states. 

In  the  second  meeting  of  the  Council,  held  in  London,  this 
topic  was  carefully  studied,  and  after  a  brilliant  report  by 
Bourgeois,  it  was  agreed  to  submit  the  matter  to  a  committee  of 
prominent  internationalists  in  order  that  they  might  devise 
means  to  obviate  such  difficulties  as  impeded  the  realization  of 
the  purpose.  Among  those  international  figures  two  South 
Americans  were  included:  Clovis  Bevilacqua  and  Dr.  Drago, 
the  name  of  the  latter  now  being  associated  with  sad  memories, 
a  man  for  whom  Venezuela  retains  grateful  and  respectful 
affection. 

Another  project  of  the  League  is  the  organization  of  labor. 
Do  you  know  any  human  beings  more  worthy  of  the  considera- 
tion of  the  mighty  and  the  pity  of  the  world  than  the  child,  the 
woman  and  the  workman  who  spends  his  strength  in  fruitful 
labor? 

After  having  presented  the  more  remote  antecedents  and  the 
genesis  of  the  Covenant  of  the  League,  as  well  as  the  ends  it 
aims  at  and  the  means  it  follows  to  realize  them,  it  only  remains 
to  say  something  of  the  working  of  the  new  organism  of  the 
international  law  created  by  the  Covenant.  In  this  I  shall 
follow  the  Covenant  itself: 

MEMBERS  OF  THE  LEAGUE 

The  members  of  the  League  are  of  two  classes,  the  original  members  and  those 
later  incorporated. 

The  original  members  are: 

1.  The  Allied  and  Associated  Powers  signatory  of  the  Treaty  of  Peace. 

2.  States  invited,  which  may  have  acceded  without  reservations  to  the 
Covenant. 


Venezuela  Report  153 

Thirteen  states,  among  them  Venezuela,  were  invited,  and  all  acceded. 

The  incorporated  members  are: 

Any   fully  self-governing  State,   Dominion  or  Colony  which   may   be 
admitted. 

Any  member  of  the  League  may,  after  two  years'  notice  of  its  intention  so 
to  do,  withdraw  from  the  League,  provided  that  all  its  international  obligations 
shall  have  been  fulfilled  at  the  time  of  its  withdrawal. 

The  Assembly  is  empowered  to  receive  new  members  of  the  Society  by  a  vote 
of  two-thirds  of  its  members. 

Any  member  guilty  of  non-fulfillment  of  the  obligations  established  by  the 
Covenant  may  be  expelled  from  the  League  by  the  unanimous  vote  of  all  the 
members  of  the  Society  represented  in  the  Council. 

ORGANS  AND  FUNCTIONS 

The  organs  of  the  Association  are: 

A.  The  Assembly; 

B.  The  Council. 

They  will  be  assisted  by  a  permanent  Secretary. 
*****  *** 

The  Assembly  will  be  composed  of  not  more  than  three  representatives  for 
each  member  of  the  League,  who  will  have  the  right  to  one  vote  only. 

The  Assembly  may  deal  at  its  meetings  with  any  matter  within  the  sphere  of 
action  of  the  League  or  affecting  the  peace  of  the  world. 

The  Council  shall  consist,  at  present,  of  representatives  of  the  principal  Allied 
and  Associated  Powers,  together  with  representatives  of  four  other  members  of 
the  League,  as  follows:  one  representative  of  the  United  States,  one  of  the 
British  Empire,  one  of  France,  one  of  Italy  and  one  of  Japan;  and  four  other 
members  who,  until  new  appointments  are  made  by  the  Assembly,  will  be  repre- 
sentatives of  Belgium,  Brazil,  Spain  and  Greece. 

Since  the  Covenant  of  the  League  has  not  been  approved  by  the  Senate  of 
the  United  States,  that  Power  has  not  had  the  stated  representation,  and  the 
meetings  of  the  Council  have  taken  place  with  the  other  eight  members. 
********* 

The  Assembly  and  the  Council  shall  decide  (as  a  rule)  by  the  unanimous  vote 
of  all  the  members  represented  at  the  meeting. 

All  matters  of  procedure  (appointment  of  investigation  committees,  etc.) 
will  be  decided  by  a  majority  vote. 

********* 

The  Secretary-General  shall  be  appointed  by  the  Council  with  the  approval 
of  the  Assembly. 

********* 

The  representatives  of  the  Association  shall  enjoy  diplomatic  immunity. 
Their  meetings,  buildings,  etc.,  shall  be  inviolable. 

The  Council  may  select  the  seat  of  the  League.  For  the  present,  the  Coven- 
ant establishes  that  seat  in  the  city  of  Geneva. 

********* 

A  Military  and  Naval  Commission  shall  be  established  to  advise  on  military, 


154  School  of  Foreign  Service 

naval,  and  aerial  questions  generally,  and  especially  on  the  execution  of  the 
provisions  of  Articles  1  and  8,  that  is,  regarding  the  Members  of  the  League 
and  the  reduction  of  armaments. 

********* 
The  Council  is  empowered  to 

1.  Prepare  the  plans  for  the  reduction  of  armaments,  in  view  of  the  investi- 
gations and  decisions  made  by  the  several  governments. 

2.  Take  steps  with  regard  to  the  private  manufacture  of  ammunition  and 
war  materials. 

********* 
The  members  of  the  League  undertake  to  respect  and  preserve  as  against 
external  aggression  the  territorial  integrity  and  existing  political  independence 
of  all  members  of  the  League.  The  Council  shall  advise  upon  the  means  to 
assure  guaranties  for  territorial  integrity  and  independence.  Any  war  or  threat 
of  war  against  any  member  of  the  League  is  a  matter  of  concern  to  the  whole 
League. 

SPHERE  OF  ACTION  OF  THE  LEAGUE 

The  League,  through  its  contractual  character,  establishes  unavoidable 
obligations  for  the  states  which  enter  it.  Accordingly,  the  remaining  states 
shall  be  foreign  to  it,  since  it  is  well  known  that  the  conventions  impose  obliga- 
tions only  on  the  parties  signing  them  or  adhering  to  them. 

But  the  nature  of  this  international  organism  itself  prevents  its  being  entirely 
so.  The  League,  considering  the  ends  at  which  it  aims,  could  not  limit  its 
actions  to  the  states  forming  it,  even  though  those  states  may  be,  as  they  are, 
almost  all  the  countries  of  the  world.  It  is  obvious  that  the  League,  on  reducing 
its  armaments,  could  not  see,  without  concern,  another  state  extraneous  to  it 
increasing  its  own  armament. 

We  have  already  seen  that  the  Assembly  has  to  take  cognizance  not  only  of 
all  that  is  comprised  in  its  field  of  action,  but  of  all  which  may  affect  the  peace 
of  the  world,  and  this  gives  it  an  unlimited  sphere  of  action. 

In  the  event  of  a  dispute  between  a  member  of  the  League  and  a  state  which 
is  not  a  member  of  the  League,  the  state  not  a  member  of  the  League  shall  be 
invited  (among  other  measures  to  preserve  peace)  to  accept  the  obligations  of 
membership  in  the  League  for  the  purpose  of  such  dispute. 

In  general,  regarding  states  not  members  of  the  League,  the  League  shall 
endeavor  to  bring  it  about  that  they  accept  in  their  disputes  the  same  juridical 
procedure  as  the  members  of  the  League,  that  is  to  say:  mediation,  arbitration, 
commissions  of  investigation,  etc.;  and  the  League  may  even  apply  the  sanctions 
which  the  member  states  may  incur  for  non-fulfillment  of  the  Covenant,  and 
which  range  from  measures  of  economic  isolation  to  acts  of  warfare. 

A  formalistic  and  narrow  criterion  alleges  that  international 
law  is  not  law  at  all,  since  the  three  elements  which  make  law 
tangible  for  all  persons, — the  legislator,  the  judge,  and  the 
executive,  are  lacking  in  it. 

The  Covenant  of  the  League  of  Nations  undertakes  to  present 


Venezuela  Report  155 

all  those  personages.  It  offers  all  to  us  simultaneously,  the 
legislator  par  excellence -,  the  judge  and  the  executor  of  all  great 
decisions,  in  one  and  the  same  organ,  namely  the  vigilant  public 
opinion  of  humankind. 

Here,  in  brief  summary,  as  prepared  for  a  lesson,  is  the  Coven- 
ant of  the  League.  It  it  fails  today,  it  will  reappear.  That 
idea  is  immortal,  and  it  will  come  back  purified  and  more 
beautiful.  The  fact,  now  unquestionable,  of  economic  solidarity 
must  bring  about  political  solidarity.  Nations  will  no  longer  be 
able  to  attack  and  dismember  each  other  without  injuring  them- 
selves. 

Solidarity  and  cooperation;  diplomacy  frank  and  open,  and 
at  the  service  of  the  peoples,  not,  as  heretofore,  a  false  art  of 
courtiers  and  lackeys;  permanent  freedom  for  navigation  and 
commerce;  economic  liberty;  general  disarmament;  equality 
among  states,  the  great  as  well  as  the  small,  these  are  the  ideas 
expressed,  with  the  conviction  and  the  prestige  of  an  apostle,  by 
President  Wilson  and  which  the  universal  conscience  of  mankind, 
although  it  had  known  them  before,  has  now  taken  up  as  a  new 
gospel. 

The  thinkers  of  the  French  Revolution  could  well  be  proud  of 
having  proclaimed  the  right  of  man.  To  President  Wilson  will 
belong  the  glory  of  proclaiming  the  rights  of  peoples,  because  the 
League  of  Nations  does  not  mean  the  denial  of  patriotism,  the 
denial  of  country,  but  the  glorification  of  this  sublime  concept, 
as  the  idea  of  country  does  not  exclude  the  mother  idea  of 
family  and  home,  which  was  and  ever  remains  its  necessary 
foundation.  These  are  the  links  of  a  mystic  chain,  not  of 
oppression  but  of  salvation,  of  unity  and  harmony.  Build 
honorable  homes  and  you  will  have  a  great  country;  ennoble  your 
country  through  virtue  and  you  work  for  the  world. 

I  thank  you  all,  especially  Dr.  Sherwell,  for  having  been  so 
good  as  to  honor  with  your  presence  this  simple  ceremony. 


156  School  of  Foreign  Service 


II 

EDITORIAL    COMMENT    ON   THE    GEORGETOWN 
MISSION  TO  VENEZUELA 


GOOD  TRADE  AMBASSADORS 

[From  N.  Y.  Post  Express,  August  11,  1920.] 

Georgetown  University  has  a  foreign  service  department  in 
full  operation,  the  worth  of  which  this  paper  testified  to  when 
the  project  was  first  announced.  Recently  twenty-five  students 
of  this  department  were  sent  to  South  America  to  study  trade 
conditions  and  they  made  their  headquarters  first  at  Caracas, 
Venezuela.  Now  note  what  has  happened.  These  young 
people  set  up  official  and  domestic  housekeeping  at  the  United 
States  consulate;  they  went  about  among  the  Venezuelans,  who 
found  them  likable,  and  soon  the  consulate  became  a  rendez- 
vous for  business  people  of  Caracas.  And  there  have  been  more 
sales  of  household  articles  and  of  office  equipment  of  various 
kinds  in  Caracas  and  throughout  Venezuela  than  the  regular 
commercial  letter,  and  the  traveling  agent  who  rushes  through 
the  land  have  achieved  in  the  past  five  years.  Moreover,  there 
is  correspondence  relating  to  bigger  orders  coming  in  to  business 
houses  which  have  been  quick  to  communicate  with  George- 
town University.  Here  is  the  sort  of  trade  embassy  we  need  in 
South  America  and  the  world  around.  Train  our  young  people 
to  the  idea  and  the  knowledge  needed  for  foreign  service,  both 
commercial  and  political.  And  then  send  them  abroad  to 
become  known  as  well  as  to  know.  We  are  the  least  well  known 
of  any  great  nation  outside  our  own  borders,  for  we  have  been 
least  well  represented.  It  is  time  to  change  all  this  and  other 
higher  schools  might  well  follow  Georgetown's  example. 

STUDENT  FRATERNIZATION 

[From  El  Nuevo  Diario,  Caracas,  June  20,  1920.] 

Students,  as  a  general  rule,  are  free  from  prejudices  and 
are  exempt  from  the  burden  of  preconceived  ideas  which  in 
most  cases  distort  the  judgment  of  the  individuals  who  purpose 


Venezuela  Report  157 

to  learn  from  the  bottom  the  problems  of  a  distinctive  national- 
ity. By  reason  of  their  temperament  they  are  optimists  and 
like  to  view  with  dispassionate  eyes  the  phenomena  of  life. 
Therefore  their  impressions  possess  a  high  value  of  sincerity, 
which  contains  perhaps  more  worth  than  the  observations  of 
experience.  The  North  American  students  who  are  going  to 
Venezuela,  we  are  sure,  will  be  able  to  carry  back  on  their  return 
a  fresh  and  pleasing  impression  of  the  noble  Venezuelan  land, 
and  will  be  able  to  understand  that  on  the  part  of  the  students 
of  Spanish  America  there  exists  toward  those  of  the  United 
States  nothing  but  warm  sympathy  and  a  generous  brotherhood. 

It  is  to  be  desired  that  in  years  to  come  the  University  of 
Georgetown,  which  now  has  given  the  example,  and  other  North 
American  Universities  will  organize  student  trips  such  as  this  to 
other  countries  of  the  New  World,  sending  groups  of  students 
who  for  some  months  will  live  the  life  of  the  Spanish  Americans. 

In  turn,  it  is  to  be  desired  also  that  the  Spanish  American 
Universities  will  inaugurate  these  student  trips  to  the  United 
States,  supervising  them  in  a  proper  manner,  and  sending  each 
year  a  certain  number  of  students,  not  to  study  in  the  cloister 
but  to  put  themselves  in  touch  with  the  daily  life  of  the  country 
and  the  activity  of  the  masses. 

For  the  Venezuelans  it  will  be  a  matter  of  satisfaction — this 
visit  of  the  North  American  students — and  with  all  confidence  the 
society  of  this  country  will  endeavor  to  prove  its  worth  in 
making  their  stay  agreeable  to  them,  facilitating  for  them 
the  necessary  means  whereby  their  voyage  may  be  in  all  respects 
profitable  in  order  that  a  definite  judgment  may  be  formed  of 
the  importance  of  our  nation. 

The  trip  organized  by  Dr.  Sherwell  in  the  form  we  have 
already  noted,  seems  to  be  a  precedent  of  great  importance  for 
the  relations  between  the  student  societies  of  the  two  great 
portions  of  the  continent,  as  it  must  redound  in  the  near  future 
to  the  benefit  of  all. 

To  labor  in  this  furrow  signifies  to  water  a  fertile  seed,  a  seed 
of  true  progress  and  democracy,  and  whoever  dedicates  his 
efforts  to  this  end  deserves  the  congratulations  of  the  public. 


158  School  of  Foreign  Service 

LLEGADA  DE  LOS  ESTUDIANTES  AMERICANOS 

[From  El  Nuevo  Diario,  June  27, 1920.} 

La  Guaira,  26  de  junio, — Hoy,  como  estaba  anunciado, 
llegaron  en  el  vapor  Caracas,  el  notable  profesor  senor  Sherwell, 
de  la  Universidad  de  Georgetown,  y  el  grupo  de  estudiantes 
americanos  que  vienen  a  Caracas  a  pasar  vacaciones  y  a  practi- 
car  sus  conocimientos  de  espanol. 

Al  vapor  subieron  a  presentarle  sus  salutaciones  varias  comi- 
siones:  una  del  Ministerio  del  Exterior,  otra  del  Ministerio  de 
Instruccion  Publica  y  otra  de  la  Federacion  de  Estudiantes 
venezolanos. 

En  la  Aduana,  el  senor  M.  A.  Falc6n  Rojas  ofrecio  varies 
brindis  de  champana  a  nombre  de  los  nombrados  Ministerios,  y 
ademas  en  nombre  del  senor  Ministro  de  Hacienda. 

Luego,  el  senor  Sherwell,  todos  los  estudiantes  y  las  diversas 
comisiones  pasaron  al  hotel  "La  Alemania, "  de  Macuto,  donde 
se  sirvio  un  esplendido  lunch. 

Como  a  las  cuatro  de  la  tarde  partieron  todos  en  automovil 
para  Caracas. 

En  todos  estos  actos  reino  la  mayor  cordialidad.  Los 
estudiantes  se  alojan  en  las  mejores  casas  de  pensi6n  de  esta 
ciudad. 

El  Profesor  Sherwell,  en  sus  palabras  de  respuesta  a  los 
cordiales  brindis  de  que  fueron  objeto  tan  to  el  como  los  estudi- 
antes que  lo  acompanan,  expreso  su  profundo  agradecimiento 
por  la  esplendida  manera  con  que  se  les  ha  recibido  en  Venezuela 
la  y  manifesto  que  no  le  sorprendian  en  manera  alguna,  las  aten- 
ciones  de  que  era  objeto,  pues  bien  sabia  que  en  este  pais  asi  se 
demostraba  la  cordial  y  sincera  simpatia  que  se  siente  por  los 
hijos  de  la  gran  Republica. 

******* 

En  esta  ciudad,  desde  su  llegada,  los  distinguidos  huespedes 
son  objeto  de  multiples  atenciones;  en  especial  el  senor  Sherwell, 
a  quien  presentaron  sus  saludos  en  su  alojamiento,  numerosas, 
altas  personalidades,  ademas  de  las  comisiones  nombradas  por 
los  Ministros  del  Exterior  de  Hacienda  y  de  Instruccion  Publica. 

EL  NUEVO  DIARIO,  de  la  manera  mas  cordial  presenta  su 
saludo  de  bienvenida  al  senor  Sherwell  y  a  los  estudiantes  que 
le  acompanan,  y  les  desea  todo  g6nero  de  satisfacciones  en  su 
estada  entre  nosotros. 


I 
I 


Venezuela  Report  159 

Con  el  mayor  placer  publicamos  de  seguidas  la  nomina  de  los 
j6venes  estudiantes  que  van  a  ser  nuestros  distinguidos  hues- 
pedes  y  a  estrechar  con  su  presencia,  los  lazos  de  tradicional  y 
fuerte  amistad  que  ligan  a  los  pueblos  de  los  Estados  Unidos  y 
de  Venezuela. 

Doctor  Sherwell,  Director;  Walter  Donnelly,  James  O'Neil, 
Paul  Babbit,  George  McKenna,  Thomas  Morris,  John  Heiler, 
David  Schlesinger,  Tounsend,  Frazee,  Costello,  Philip  Sullivan, 
Chirieleison,  Johnson,  Murphy,  Fanning,  Joseph  Quinlan, 
Hopkins,  J.  Homer  Butler. 


EL  PROFESOR  SHERWELL 

[From  El  Universal,  June  27, 1920.} 

Desde  ayer  es  huesped  de  Caracas  el  eminente  hombre  de 
Ciencias  norteamericano  seiior  Guillermo  A.  Sherwell,  Pro- 
secretario  del  Segundo  Congreso  Financiero  Panamericano  y 
Consultor  juridico  del  Consejo  Central  Ejecutivo  de  la  Alta 
Comision  Internacional. 

Desde  su  desembarco  en  La  Guaira  el  seiior  Sherwell  ha 
sido  objeto  de  cordiales  agasajos  por  parte  del  Gobierno  de 
Venezuela  y  de  los  centres  mas  notables  del  pais. 

Per  designacion  del  Ministerio  de  Hacienda  el  sefior  Ram6n 
Jimenez  Sanchez,  Inspector  General  de  Aduanas  cumplimento 
a  su  llegada  al  Profesor  Sherwell  y  le  ofreci6  hospitalidad  en 
nombre  del  Gobierno  Nacional. 

MISION    ESTUDIANTIL 

Como  estaba  anunciado,  ayer  hizo  su  arribo  a  La  Guaira  el 
vapor  americano  "Caracas,"  a  bordo  del  cual  llegaron  el  doctor 
Guillermo  Sherwell  y  el  grupo  de  jovenes  estudiantes  de  la 
Universidad  de  Georgetown,  Estados  Unidos. 

A  recibirlos  al  vecino  puerto  bajaron  en  automovil,  ademas  de 
las  delegaciones  del  Ministerio  de  Relaciones  Exteriores  y  del 
Consejo  Nacional  de  Instrucci6n  Publica,  una  comision  especial 
de  la  Federacion  de  Estudiantes  Venezolanos  compuesta  por 
los  bachilleres  Atilano  Carnevali  (Presidente  de  la  Asociaci6n), 
Efrain  Cayama  Martinez,  Miguel  Zufiiga,  Jacinto  Fombona, 
Rodolfo  Moleiro,  German  de  las  Casas,  Gonzalo  Carnevali  y 
Eduardo  Calcafio  hijo.  Despues  del  saludo  de  bienvenida  que 


160  School  of  Foreign  Service 

se  les  dio  a  bordo,  los  estudiantes  americanos  fueron  invitadc 
por  sus  companeros  de  Venezuela  a  un  almuerzo  en  Macuto,  de 
donde  se  dirigieron  a  Caracas  en  las  ultimas  horas  de  la  tarde. 

La  vista  de  tan  distinguidos  elementos  de  la  juventud  norte- 
americana  tiene  especial  significacion  en  estos  momentos  en  que 
se  acentua  un  acercamiento  espiritual  mas  estrecho  entre  los 
pueblos  de  America. 

Igualmente  el  serlor  Manuel  Segundo  Sanchez,  Director  de  la 
Biblioteca  Nacional,  comisianado  del  Ministerio  de  Hacienda 
para  atender  al  distinguido  huesped  y  facilitar  sus  labores  en 
Caracas  le  presento  sus  saludos  a  bordo  del  vapor  americano. 

El  doctor  Sherwell  subi6  a  Caracas  acompanadodelos  seiiores 
Sanchez  y  Jimenez  Sanchez  y  ya  en  su  domicilio  fue  visitado  por 
el  doctor  Alvarez  Feo,  Director  de  Aduanas  en  el  Despacho  de 
Hacienda,  quien  le  cumpliment6. 

La  Alta  Comision  Internacional  recibira  hoy  a  las  llj^  a.  m. 
al  distinguido  huesped  en  su  salon  de  sesiones.  El  serlor 
Sherwell,  Profesor  del  Departamento  Espanol  de  la  Universidad 
de  Georgetown  trae  encargo  del  Consejo  Central  Ejecutivo  de  la 
Alta  Comision  Internacional  de  presentar  a  la  Secci6n  Vene- 
zolana  un  cordial  saludo  y  tratara  con  ella  diversos  asuntos. 
Con  este  objeto  la  Comision  celebrara  algunas  sesiones  a  las  que 
asistira  el  doctor  Sherwell. 

El  distinguido  huesped  preside  un  grupo  de  estudiantes  de  la 
Universidad  de  Georgetown  cuya  visita  a  Caracas  propendera 
a  un  estrecho  acercamiento  estudiantil  entre  los  dos  paises. 
Traen  el  prop6sito  de  ofrendar  una  corona  sobre  la  tumba  del 
Libertador  y  otra  en  la  estatua  de  Washington. 

Tal  circunstancia  hace  mas  simpatica  la  visita  del  profesor 
Sherwell  a  Caracas  donde  se  le  preparan  algunos  homenajes. 

Al  presentar  nuestros  saludos  al  ilustre  huesped  hacemos  los 
votos  mas  cordiales  porque  su  mision  en  Venezuela  tenga  el  mas 
feliz  exito. 


EL  UNIVERSAL  se  complace  en  presentar  su  salutacion  de 
bienvenida  a  los  estudiantes  norteamericanos,  cuya  visita  a 
Caracas  contribuira  a  hacer  mas  solidos  y  eficaces  los  lazos 
intelectuales  que  unen  a  Venezuela  con  la  gran  patria  de  Wash- 
ington y  a  establecer  un  mas  active  intercambio  de  ideas  entre 
las  juventudes  estudiantiles  de  ambos  paises. 


Venezuela  Report  161 

DR.  SHERWELL  ARRIVES  DELIGHTED  WITH  THE  SITUATION  WHICH 
HE  MET  IN  VENEZUELA — WHAT  MOST  IMPRESSED  HIM  WAS  THE 
HIGH  CHARACTER  OF  THE  GOVERNMENT  AND  ITS  STRICT 
DEVOTION  TO  THE  ACCOMPLISHMENT  OF  ITS  DUTY,  HIGHWAYS, 

RAILROADS,  MONETARY  SYSTEM,  ETC. FlNDS  ALSO  THAT  THE 

PEOPLE   "iS   ONE   OF  THE    BEST  TYPES   OF   HUMANITY  THAT 

EXISTS  IN  THE  WORLD. " ALL  THESE  TOPICS  WILL  BE  TREATED 

IN  THE  THESES  WHICH  THE  STUDENTS  OF  THE  UNIVERSITY  OF 
GEORGETOWN  WILL  PRESENT  IN  THEIR  NEXT  EXAMINATIONS 
TO  OBTAIN  THEIR  DEGREES. 

{From  La  Prensa,  New  York,  August,  26,  1920.] 

Washington,  August  25th. — Dr.  William  A.  Sherwell,  Pro- 
fessor of  Spanish  in  the  University  of  Georgetown  and  Expert 
Adviser  in  the  High  Interamerican  Commission,  who  has  just 
returned  from  Venezuela  with  the  group  of  18  students  from  the 
School  of  Foreign  Service  of  the  University,  has  come  from 
Venezuela  impressed  with  the  high  class  of  the  Government 
employees  which  that  country  has,  as  well  as  with  its  business 
men,  where  he  was  warmly  welcomed  by  the  same  people,  whom 
he  characterizes  as  "one  of  the  best  types  of  humanity  which 
exists  in  the  world. "  The  Professor  was  in  charge  of  the  stud- 
ents who  are  preparing  to  enter  the  field  of  foreign  trade, 
several  of  whom,  he  says,  have  received  offers  from  commercial 
houses,  notwithstanding  which  they  will  continue  in  their  Uni- 
versity studies  until  next  June.  Each  student  has  prepared  an 
account  or  report  of  some  one  of  the  various  phases  of  industry- 
economic,  industrial  or  commercial,  of  Venezuela.  The  coffee 
and  sugar  industries,  the  petroleum  exportation,  and  the  opera- 
tion of  the  mines,  the  banking  and  monetary  system,  immigra- 
tion laws,  education,  public  debt,  are  some  of  the  topics  which 
the  students  will  treat  of  in  their  reports. 

Dr.  Sherwell  spoke  of  the  great  development  which  has  taken 
place  in  Venezuela,  of  the  great  extension  of  railroad  work,  which 
in  many  parts  crosses  the  mountains,  and  of  the  splendid 
automobile  roads  already  constructed  and  those  planned  for 
construction.  In  Venezuela  there  are  many  automobiles,  but 
orders  will  continue.  Tractor  machines  are  being  introduced  in 
the  farming  sections  and  the  cattle  industry  is  taking  on  a  new 
impulse.  New  models  are  being  introduced,  especially  from  the 


162  School  of  Foreign  Service 

United  States,  and  industry  in  the  large  is  well  advanced. 
There  is  opportunity  for  further  development  of  the  cattle 
industry,  according  to  Dr.  Sherwell,  since  there  exist  several 
districts  not  yet  utilized  for  this  purpose. 

Venezuela  is  the  South  American  country  nearest  to  the 
United  States,  and  the  opportunity  exists  for  a  more  extensive 
commerce  between  the  two  countries.  And  yet,  says  Dr. 
Sherwell,  there  is  no  large  passenger  and  freight  service  between 
the  two  nations.  He  thinks  that  it  is  necessary  to  remedy  this 
need. 

In  going  to  Venezuela  as  the  official  representative  of  the  High 
Interamerican  Commission  and  instructor  of  the  students,  the 
Doctor  was  in  touch  with  General  Juan  Vicente  Gomez,  Presi- 
dent-Elect,  the  members  of  the  Cabinet  and  other  prominent 
officials.  The  Minister  of  Public  Education  gave  a  dinner  in 
San  Juan  to  the  Sherwell  party,  General  Gomez  and  the  Presi- 
dent being  present.  One  of  the  features  of  the  visit  consisted  of 
a  trip  in  automobile  across  the  country  in  four  days  in  which 
they  were  able  to  inspect  the  places  of  industrial  and  historical 
interest.  They  visited  the  sugar  cane  and  coffee  plantations; 
Valencia,  the  most  beautiful  of  tropical  cities;  La  Victoria, 
famous  in  history  through  having  been  the  place  where  at  the 
beginning  of  the  last  century  the  Spanish  forces  were  defeated 
by  the  Independents;  and  the  old  farm  of  San  Mateo,  belonging 
to  Bolivar,  where  Captain  Ricaurte,  seeing  that  he  was  not  able 
to  hold  the  hill  which  he  was  defending  much  longer,  sent  his 
men  to  the  plain,  and  set  fire  to  the  park  of  artillery  when 
the  Spanish  arrived,  all  being  blown  up  with  the  explosion. 

Dr.  Roman  Cardenas,  Minister  of  the  Interior  and  President 
of  the  High  Interamerican  Commission,  is  a  man — says  Dr. 
Sherwell — for  whom  he  entertains  the  highest  regard.  He  con- 
ferred with  all  the  members  of  the  Cabinet,  with  some  of  whom 
he  was  in  close  contact,  and  he  finds  that  they,  as  well  as  the 
employees  in  the  Government  offices,  are  competent  and  are 
steadfastly  devoted  to  their  work,  without  mingling  in  politics. 
Dr.  Sherwell  spoke  also  of  the  wonderful  painters  that  Venezuela 
had  produced,  mentioning  Sefior  Tito  Salas,  one  of  the  great 
painters  of  the  day.  There  are  in  Venezuela  many  poets  and 
writers  of  high  merit. 

The  money  system,  similar  to  the  French,  is  functioning 


Venezuela  Report  163 

efficiently.  There  is  gold  in  abundance,  says  Dr.  Sherwell;  and 
during  the  war,  when  most  countries  suspended  payment, 
Venezuela  continued  paying  its  debts,  observing  strict  economy, 
and  now  has  on  deposit  in  the  banks  a  large  quantity  of  gold. 


GEORGETOWN  STUDENTS  WELCOMED  IN 
VENEZUELA 

[From  Sunday  Star,  Washington,  July,  1920.} 

Prof.  Guillermo  A.  Sherwell,  professor  of  Spanish  at  George- 
town University,  and  the  eighteen  students  of  the  university's 
School  of  Foreign  Service,  who  left  Washington  a  little  more 
than  a  month  ago  to  gain  first-hand  and  practical  knowledge  in 
Latin-American  trade,  have  been  most  cordially  welcomed  in 
Venezuela,  both  by  officials  of  the  government  and  by  the 
people  there,  according  to  a  letter  which  has  just  been  received 
by  a  friend  here.  In  addition  to  representing  Georgetown  and 
acting  as  preceptor  to  the  students,  Dr.  Sherwell  also  went  as 
representative  of  the  inter-American  high  commission,  of  which 
he  is  judicial  expert. 

"  There  is  a  tendency — very  successful  so  far — to  make  Vene- 
zuela independent  in  industrial  matters,"  writes  Dr.  Sherwell, 
this  in  connection  with  a  visit  he  and  his  party  have  just  paid 
to  an  exposition  of  natural  resources  and  industrial  products. 

"The  highroads  are  excellent,"  he  continues.  "The  appro- 
priation for  public  education  has  been  doubled  this  year.  The 
monetary  system  is  simple.  Gold  circulates  freely. " 

Referring  to  the  government  departments,  of  which  he  has 
made  a  special  study,  he  says  they  "seem  to  have  the  right  man 
in  the  right  place." 

Dr.  Sherwell  reports  that  just  before  he  arrived  in  Caracas, 
the  capital,  the  commercial  travelers'  convention  had  been 
ratified.  The  purpose  of  this  treaty,  which  has  now  been  agreed 
to  between  the  United  States  and  six  of  the  other  American 
republics,  is  to  facilitate  trade  relations  by  simplifying  the  cus- 
toms rules  and  regulations  for  the  admission  into  the  various 
countries  of  commercial  travelers  with  their  samples. 

The  convention  now  being  signed  with  the  different  countries 
will  do  away  with  many  of  the  inconveniences  to  which  commer- 


164  School  of  Foreign  Service 

cial  travelers  have  been  subjected,  such  as  the  .payment  in  some 
countries  of  numerous  local  taxes  and  fees.  Under  the  new 
system  a  single  license  fee  in  each  country  will  be  all  that  is 
required. 

Another  important  feature  is  that  there  will  be  liberal  customs 
treatment  of  samples  carried  by  the  " drummer."  Samples 
without  commercial  value  will  be  admitted  duty  free,  while 
other  samples  will  be  granted  temporary  free  admission  under 
bond  for  their  re-exportation  within  six  months.  Delay  in  the 
clearance  of  samples  also  will  be  avoided.  In  addition  to  Vene- 
zuela, the  other  countries  which  have  signed  the  travelers' 
convention  are  Guatemala,  Panama,  Paraguay,  Salvador  and 
Uruguay. 

A  convention  for  the  arbitration  of  commercial  disputes 
between  the  Chamber  of  Commerce  of  Venezuela  and  the  Cham- 
ber of  Commerce  of  the  United  States,  also  has  just  been  signed, 
writes  Dr.  Sherwell.  All  of  this,  he  said,  was  "good  news. "  Simi- 
lar conventions  between  the  national  trade  bodies  of  this  country 
and  some  of  the  other  American  republics  already  are  in  operation 
and  the  results  so  far  achieved  are  said  to  be  excellent.  This 
leads  interested  trade  officials  to  believe  that  such  machinery 
for  the  prompt  and  efficient  treatment  of  disputes  which  may 
arise  between  business  men  and  concerns  of  various  countries 
will  be  set  up  one  after  another  in  the  countries  with  which  the 
United  States  deals. 


NOTAS   DEPORTIVAS 

EL  MATCH  DE  BASE-BALL 

[From  El  Impartial,  July  18, 1920.} 

Esta  mafiana,  en  los  bonitos  terrenes  del  Centre  Atl6tico  y 
con  una  numerosa  concurrencia,  florida  por  el  elemento  femenil, 
efectuose  el  desafio  concertado  entre  dos  novenas  de  base  ball, 
formadas  la  una  por  los  estudiantes  norteamericanos  de  la 
Universidad  de  Georgetown  y  la  otra  por  discipulos  del  Colegio 
Salesiano  de  esta  ciudad. 

En  verdad,  la  proporcion  atletica  no  era  muy  justa:  los 
americanos  llevaban  la  ventaja  en  todo:  tamafio,  edad,  fuerzas; 
pero,  los  muchachos  del  Salesiano  hicieron  el  mayor  esfuerzo  por 
quedar  bien  y  a  ultima  hora,  cuando  en  el  inning  final  los  de 


TROPHY   PRESENTED  TO  GEORGETOWN  STUDENTS   BY 
MINISTER  OF  PUBLIC  INSTRUCTION 


Facing  p.  165 


Venezuela  Report  165 

Georgetown  se  anotaron  un  "chorro"  de  carreras  que  hacia 
aparecer  la  "pela"  como  vergonzosa,  los  criollitos  se  rehicieron 
y  metieron  otras  tantas,  salvando  el  honor,  por  lo  menos  in 
partibus. 

Entre  estos  hay  que  consignar  un  aplauso  para  la  tercera  base 
de  los  Salesianos,  Franco  Russo,  que  fue  el  heroe  de  la  fiesta. 
El  juego  se  cargo  desde  el  comienzo  sobre  tercera;  en  sus  manos 
estuvo  toda  la  defensa  y  el  muchacho  se  porto  como  un  campe6n, 
pues  en  sus  manos  cayeron  por  lo  menos  nueve  outs. 

Tambien  estuvo  muy  activo  y  ericas  Coraito.  Y  se  distinguie- 
ron  Maal,  Castellano,  Perez,  L6pez,  Ravelo  y  Arratia  (M). 

De  los  americanos,  recordaremos  especialmente  un  foul-out 
por  el  catcher  Fanning  y  otro  por  la  3a.  base  Hopkins;  una 
estupenda  cogida,  corriendo  y  de  espaldas,  por  el  Short-Stop 
Frazee  y  todo  el  "trabajo"  del  dia  por  la  primera  base  Joe 
Quinlan. 

De  una  y  otra  parte  batearon  duro  y  ninguno  de  los  dos 
pitchers  llego  complete  al  final. 

Despues  del  juego  las  novenas  y  algunos  concurrentes  fueron 
invitados  al  Colegio  y  obsequiados  alii  por  los  R.  R.  P.  P. 
Salesianos.  Hubo  vivas  en  honor  de  la  Universidad  de  George- 
town, a  los  que  correspondieron  los  americanos  con  hurras  a  los 
estudiantes  venezolanos. 

El  Colegio  Salesiano  regal6  a  los  de  Georgetown  una  bola,  la 
ultima  con  que  se  jugo,  con  la  siguiente  inscripcion:  "Caracas — 
Venezuela — El  Colegio  Salesiano  a  los  estudiantes  de  George- 
town. " 

Fue,  en  todo,  una  fiesta  de  simpatia  y  de  confraternidad,  sin 
otro  estimulo  mayor  que  el  verdadero  amor  al  deporte,  puesto 
que,  sabido  es,  los jovenes  nortenos  no  son  profesionales  del  base 
ball,  sino  que  tienen  la  innata  aficion  de  los  jovenes  de  su  pais 
por  la  cultura  fisica. 

Y  este  juego  con  los  Salesianos  ha  sacudido  el  dormido  entus- 
iasmo  besbolistico,  con  sus  marianas  llenas  de  sol  y  alegres  de 
mujeres,  pues  ya  se  habla  de  un  proximo  encuentro  en  los  mismos 
terrenos  y  a  beneficio  de  la  Cruz  Roja  Venezolana,  entre  los 
estudiantes  de  Georgetown  y  un  team  escogido  entre  los  mejores 
jugadores  de  clubs  caraquefios  extinguidos  y  en  actividad,  como 
Samanes,  Independencia^  Salesianos^  etc. 

Asi  sea  y  tendremos  un  juego  sensacional. 


166 


School  of  Foreign  Service 


Score  por  innings  del  juego  efectuado  esta  man  ana  entre  los 
Estudiantes  de  la  Universidad  de  Georgetown  y  los  alumnos 
del  Colegio  Salesiano  de  Caracas: 

Estudiantes  de  Georgetown 
1|0|2|0|0|3|0|0|  5— Total  11 


Salesianos 


0|1|0|0|2|0|0|1|  4— Total 


A.  MATEUR. 


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